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neonofarm [45]
3 years ago
14

Clementine Company makes skateboards. They prepare master and flexible budgets and then perform variance analysis after the budg

et plan period elapses. Their data is as follows:
Budget Actual
Selling price per unit $94 $106
Variable cost per unit $50 $55
Quantity sold 988 1,070

What is the Clementine's volume variance for SALES?
Business
1 answer:
vivado [14]3 years ago
4 0

Answer:

$7708 favorable

Explanation:

Volume variance shows the negative differentiation between the actual and the budgeted quantity sold at a budgeted sales price per unit.

A positive figure for volume variance indicates that it is favorable, and a negative figure for volume variance shows that it is unfavorable.

Volume variance = (Actual Quantity - Budgeted quantity sold) × Budgeted sale price per unit.

Volume variance = ( 1070 units - 988units) × $94

Volume variance = 82 units × $94

Volume variance =$7708 favorable

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