Which one of the following presents the correct formula for the sales volume variance calculation?
A) (Actual sales in units - budgeted sales in units) x (actual selling price per unit - actual variable costs per unit).
B) (Actual sales in units - budgeted sales in units) x (actual selling price per unit - standard variable costs per unit).
C) (Actual sales in units - budgeted sales in units) x (standard selling price per unit - actual variable costs per unit).
D) (Actual sales in units - budgeted sales in units) x (standard selling price per unit - standard variable costs per unit).

Question

Quizplus · Accepted Answer

Sales volume variance is calculated by multiplying the difference between actual and budgeted sales units by the contribution margin per unit, which is the standard selling price minus the standard variable costs per unit.

Which One of the Following Presents the Correct Formula for the Sales