White planned to use $82 of material per unit but actually used $80 of material per unit and planned to make 1200 units but actually made 1000 units. The sales-volume variance is: a. $2000 favorable b. $14000 unfavorable c. $16400 unfavorable d. $2400 favorable
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
White planned to use $82 of material per unit but actually used $80 of material per unit and planned to make 1200 units but actually made 1000 units. The sales-volume variance is:
a. $2000 favorable
b. $14000 unfavorable
c. $16400 unfavorable
d. $2400 favorable
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