*Actual hours are equal to standard hours for units produced.
-Which of the following is the correct formula for the revenue volume variance?
A)Planned Revenues - Actual Revenues
B)(Planned Selling Price per Unit - Actual Selling Price per Unit) × Actual Units Sold
C)(Planned Units Sold - Actual Units Sold) × Actual Sales Price
D)(Planned Units Sold - Actual Units Sold) × Planned Sales Price

Question

​  
*Actual hours are equal to standard hours for units produced.​
-Which of the following is the correct formula for the revenue volume variance?
A)Planned Revenues - Actual Revenues 
B)(Planned Selling Price per Unit - Actual Selling Price per Unit) × Actual Units Sold 
C)(Planned Units Sold - Actual Units Sold) × Actual Sales Price 
D)(Planned Units Sold - Actual Units Sold) × Planned Sales Price

Quizplus · Accepted Answer

The revenue volume variance is calculated by comparing the difference in the number of units sold against what was planned, multiplied by the planned sales price per unit. This variance helps in understanding the impact of the difference in the volume of sales from the planned volume, without considering changes in the selling price. Option D, "(Planned Units Sold - Actual Units Sold) × Planned Sales Price," correctly represents this calculation.

​ *Actual Hours Are Equal to Standard Hours for Units Produced.​

*Actual Hours Are Equal to Standard Hours for Units Produced.