The static budget sales revenue is $69,000 and the flexible budget sales revenue is $70,000.If the actual sales price is $6 and the budgeted sales price is $6.50, what is the sales volume variance?
A)$1,000 favorable
B)$1,000 unfavorable
C)$6,000 favorable
D)$6,500 unfavorable

Question

Quizplus · Accepted Answer

The sales volume variance is calculated by comparing the flexible budget to the static budget. Here, the flexible budget sales revenue ($70,000) is higher than the static budget sales revenue ($69,000), indicating a favorable variance of $1,000.

The Static Budget Sales Revenue Is $69,000 and the Flexible