Answer the following questions using the information below:
Brennen Incorporated planned to use $24 of material per unit but actually used $25 of material per unit, and planned to make 2,000 units but actually made 2,400 units.
-The sales-volume variance is:
A)$9,600 favorable
B)$2,400 unfavorable
C)$10,000 unfavorable
D)$12,000 favorable

Question

Quizplus · Accepted Answer

The sales-volume variance is favorable because the company made more units than planned, which resulted in a higher sales volume. The variance is calculated as follows:(Actual units - Planned units) x (Actual price per unit - Planned price per unit)= (2,400 - 2,000) x ($25 - $24)= 400 x $1= $400 favorable

Answer the Following Questions Using the Information Below