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liubo4ka [24]
3 years ago
14

Smith Wholesale budgeted sales price is $40 per unit for an budgeted sales volume of 5,000 units. The actual performance was 5,5

00 units at an average sales price of $39.75. The total dollar amount of their flexible budget sales volume variance is $_____, assuming there are no cost variances.
Business
1 answer:
alex41 [277]3 years ago
8 0

Answer:

$20,000 Favorable

Explanation:

As for the provided information, we have:

Sales Volume Variance is defined as the variance arising due to difference in sales quantity based on standard price.

Formula for the above = (Actual Sales - Budgeted Sales) \times Standard Price

= (5,500 - 5,000) \times $40

= $20,000

This variance shall be categorized as favorable, as the actual sales quantity is more than the static budgeted quantity.

Therefore, Sales Volume Variance = $20,000 Favorable

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