Answer the following questions using the information below:
Bradpon Incorporated planned to use $37.50 of material per unit but actually used $36.75 of material per unit,and planned to make 1800 units but actually made 1600 units.
-The sales-volume variance is:
A)$1200 favourable.
B)$7500 unfavourable.
C)$7500 favourable.
D)$1200 unfavourable.

Question

Quizplus · Accepted Answer

The sales-volume variance is calculated as the difference between the planned and actual units produced, multiplied by the planned cost per unit: (1600 - 1800) * $37.50 = -200 * $37.50 = -$7500, which is unfavourable.

Answer the Following Questions Using the Information Below