Use the information below to answer the following question(s).All Good Things Ltd.planned on producing 600 units for the year.However, actual production was 400 units.Information concerning the direct labour cost for All Good Things Ltd.is as follows: actual results 1,000 hours at $25 per hour; static budget amounts were 1,200 hours at $21 per hour.
-What is the All Good Things Ltd.sales-volume variance?
A)$8,400 F
B)$8,400 U
C)$8,200 U
D)$8,200 F
E)$200 F

Question

Quizplus · Accepted Answer

Explanation:Sales-volume variance = (Actual hours - Budgeted hours) x Budgeted rate per hour= (1,000 - 1,200) x $21= -200 x $21= -$4,200Since actual production was less than budgeted production, the sales-volume variance is unfavorable and is reported as $4,200 unfavorable.

Use the Information Below to Answer the Following Question(s)