Cico Buckets had budgeted unit sales of 41,600 buckets.Actual sales during May totaled 42,000 buckets at $4.25 per bucket.Its budgeted sales price was $4.00 per bucket.The master budget contribution margin totaled $62,400 and the budgeted variable cost per unit was $2.50.How much is Haslo's sales volume variance?
A)$600 F
B)$100 F
C)$1,600 F
D)$1,700 F

Question

Quizplus · Accepted Answer

The sales volume variance is calculated as the difference between the actual units sold and the budgeted units sold, multiplied by the budgeted contribution margin per unit. The budgeted contribution margin per unit is the difference between the budgeted sales price ($4.00) and the budgeted variable cost per unit ($2.50), which equals $1.50. The actual units sold were 42,000, and the budgeted units were 41,600, so the difference is 400 units. Therefore, the sales volume variance is 400 units * $1.50 = $600 favorable.

Cico Buckets Had Budgeted Unit Sales of 41,600 Buckets