Saffold Corporation has provided the following data for December.

-The volume variance for December is:
A)$6,540 F
B)$6,540 U
C)$16,350 F
D)$16,350 U

Question

Saffold Corporation has provided the following data for December.

-The volume variance for December is:
A)$6,540 F 
B)$6,540 U 
C)$16,350 F 
D)$16,350 U

Quizplus · Accepted Answer

The volume variance is calculated as the difference between the actual volume and the budgeted volume, multiplied by the standard cost per unit. In this case, the actual volume is 10,000 units, the budgeted volume is 8,000 units, and the standard cost per unit is $2.05. Therefore, the volume variance is (10,000 - 8,000) * $2.05 = $16,350 F.

Saffold Corporation Has Provided the Following Data for December