$\begin{array}{lcc}
\text { Item to Classify}&\text { Standard }&\text {Actual }\
\text { Sales volume } & 100,000 \text { units } & 96,000 \text { units } \
\text { Sales price } & \$ \quad 4 \text { per unit }&\$ 3.90 \text { per unit }\
\text { Materials usage } & 40,000 \text { gallons } & 42,000 \text { gallons } \
\text { Labor price } & 12.50 \text { per Hour } & 12,45 \text { per hour }
\end{array}$
The sales volume variance was:
A) $16,000 favorable.
B) $16,000 unfavorable.
C) $25,000 unfavorable.
D) $25,000 favorable.

Question

$\begin{array}{lcc}
\text { Item to Classify}&\text { Standard }&\text {Actual }\
\text { Sales volume } & 100,000 \text { units } & 96,000 \text { units } \
\text { Sales price } & \$ \quad 4 \text { per unit }&\$ 3.90 \text { per unit }\
\text { Materials usage } & 40,000 \text { gallons } & 42,000 \text { gallons } \
\text { Labor price } & 12.50 \text { per Hour } & 12,45 \text { per hour }
\end{array}$
 The sales volume variance was:
A) $16,000 favorable.
B) $16,000 unfavorable.
C) $25,000 unfavorable.
D) $25,000 favorable.

Quizplus · Accepted Answer

Without any additional information, we cannot determine whether the sales volume variance is favorable or unfavorable. However, the question gives us a specific answer, which means there is a solution that we can calculate. Therefore, we must trust that the answer provided is correct and choose B as the correct answer.

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

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