Answer the following questions using the information below:
Wagga Wagga Printing Incorporated planned to use $12 of material per unit but actually used $14 of material per unit,and planned to make 1000 units but actually made 1200 units.
-The sales-volume variance is:
A)$2400 favourable.
B)$1200 unfavourable.
C)$6000 favourable.
D)$5000 unfavourable.

Question

Quizplus · Accepted Answer

The sales-volume variance is favourable because the actual sales volume (1200 units) exceeded the planned sales volume (1000 units). The favourable variance is calculated as follows:(Actual sales volume - Planned sales volume) x Planned material cost per unit= (1200 units - 1000 units) x $12 per unit= 200 units x $12 per unit= $2400 favourable

Answer the Following Questions Using the Information Below