Zany projected current year sales of 50,000 units at a unit sale price of $20.00. Actual current year sales were 55,000 units at $22.00 per unit. Actual variable costs, budgeted at $15.00 per unit, totaled $14.00 per unit. Budgeted fixed costs totaled $400,000, while actual fixed costs amounted to $420,000. What is the sales volume variance for total revenue? A. $100,000 unfavorable B. $100,000 favorable C. $110,000 favorable D. $110,000 unfavorable
Zany projected current year sales of 50,000 units at a unit sale price of $20.00. Actual current year sales were 55,000 units at $22.00 per unit. Actual variable costs, budgeted at $15.00 per unit, totaled $14.00 per unit. Budgeted fixed costs totaled $400,000, while actual fixed costs amounted to $420,000. What is the sales volume variance for total revenue? A. $100,000 unfavorable B. $100,000 favorable C. $110,000 favorable D. $110,000 unfavorable
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter9: Evaluating Variances From Standard Costs
Section: Chapter Questions
Problem 25E: Lowell Manufacturing Inc. has a normal selling price of 20 per unit and has been selling 125,000...
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Question
What is the sales volume variance for total revenue on these accounting question?

Transcribed Image Text:Zany projected current year sales of 50,000 units at a unit sale price
of $20.00. Actual current year sales were 55,000 units at $22.00 per
unit. Actual variable costs, budgeted at $15.00 per unit, totaled
$14.00 per unit. Budgeted fixed costs totaled $400,000, while actual
fixed costs amounted to $420,000. What is the sales volume variance
for total revenue?
A. $100,000 unfavorable
B. $100,000 favorable
C. $110,000 favorable
D. $110,000 unfavorable
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