Nap Co.has two products named X and Y.The firm had the following master budget for the year just completed:
The following operating results were reported after the year was over:
The sales quantity variance for Product X is:
A)$4,000 favorable.
B)$5,500 favorable.
C)$6,500 favorable.
D)$7,500 favorable.
E)$16,250 favorable.

Question

Nap Co.has two products named X and Y.The firm had the following master budget for the year just completed: 
The following operating results were reported after the year was over: 
The sales quantity variance for Product X is:
A)$4,000 favorable. 
B)$5,500 favorable. 
C)$6,500 favorable. 
D)$7,500 favorable. 
E)$16,250 favorable.

Quizplus · Accepted Answer

The sales quantity variance for Product X can be calculated as follows:
Actual Quantity Sold - Budgeted Quantity Sold = Sales Quantity Variance
Actual Quantity Sold = 16,500
Budgeted Quantity Sold = 10,000
Sales Quantity Variance = Actual Quantity Sold - Budgeted Quantity Sold = 16,500 - 10,000 = 6,500 favorable. Therefore, the best choice is C.

Nap CoHas Two Products Named X and Y