*Actual hours are equal to standard hours for units produced.
-If the total revenue variance is favorable and the revenue price variance is unfavorable, then the revenue volume variance must
A)exceed the revenue price variance and be favorable
B)be less than the revenue price variance and be unfavorable
C)be less than the revenue price variance and be favorable
D)be equal to the revenue price variance and be favorable

Question

​  
*Actual hours are equal to standard hours for units produced.​
-If the total revenue variance is favorable and the revenue price variance is unfavorable, then the revenue volume variance must
A)exceed the revenue price variance and be favorable 
B)be less than the revenue price variance and be unfavorable 
C)be less than the revenue price variance and be favorable 
D)be equal to the revenue price variance and be favorable

Quizplus · Accepted Answer

If the total revenue variance is favorable but the revenue price variance is unfavorable, it means the positive impact from the revenue volume variance must outweigh the negative impact from the price variance, making the volume variance favorable and larger than the price variance.

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

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