The sales volume variance was: $\begin{array}{ccc}\text { Item to Classify }&\text {Standard}&\text { Actual }\
\text { Sales volume } & 100.000 \text { units } & 96.000 \text { units } \
\text { Sales price } & \$ 4 \text { per unit } & \$ 3.90 \text { per unit } \
\text { Materials usage } & 40,000 \text { gallons } & 42.000 \text { gallons } \
\text { Labor price } & 12.50 \text { per Hour } & 12.45 \text { per hour }
\end{array}$
A)$16,000 favorable.
B)$16,000 unfavorable.
C)$25,000 unfavorable.
D)$25,000 favorable.

Question

Quizplus · Accepted Answer

The sales volume variance is calculated as (Standard Sales Volume - Actual Sales Volume) x Standard Sales Price = (100,000 - 96,000) x $4 = $16,000 unfavorable.

The Sales Volume Variance Was A)$16,000 Favorable