Question

​Marsh, Inc. provides the following​ information: Actual Sales Static Budget Flexible Budget Sales Volume Variance Sales Revenue $ 565 comma 000 $ 535 comma 000 $ 455 comma 000 ​? Calculate the sales volume variance.

Answer 1

The answer is =$30,000F

Step-by-step explanation:

Sales volume variable is the difference between actual sales and budgeted sales(we use static budget)

Actual sales is $565,000

Static budgeted sales is $535,000

Therefore, we have:

$565,000 - $535,000

=$30,000F.

F means favourable and it is favourable because actual sales are more than the budgeted sales.

It will be U(unfavorable) if the actual sales are less than the budgeted sales.