Marsh, Inc. provides the following information: $$\begin{array} { | l | c | c | c | c | }
\hline & \text { Actual Sales } & \text { Static Budget } & \text { Flexible Budget } & \text { Sales Volume Variance } \
\hline \text { Sales Revenue } & \$ 560,000 & \$ 535,000 & \$ 450,000 & ? \
\hline
\end{array}$$ Calculate the sales volume variance.
A) 25,000 F
B) 25,000 U
C) $85,000 U
D) $110,000 F

Question

Marsh, Inc. provides the following information: $$\begin{array} { | l | c | c | c | c | } 
\hline & \text { Actual Sales } & \text { Static Budget } & \text { Flexible Budget } & \text { Sales Volume Variance } \
\hline \text { Sales Revenue } & \$ 560,000 & \$ 535,000 & \$ 450,000 & ? \
\hline
\end{array}$$ Calculate the sales volume variance.
A) 25,000 F
B) 25,000 U
C) $85,000 U
D) $110,000 F

Quizplus · Accepted Answer

The sales volume variance is calculated as the difference between the flexible budget and the static budget. Here, it is $450,000 (flexible) - $535,000 (static) = -$85,000, which is unfavorable (U).

Marsh, Inc Calculate the Sales Volume Variance