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Alinara [238K]
2 years ago
12

Required: a. - d. Prepare the pro forma income statement that would appear in the master budget and also flexible budget income

statements, assuming production volumes of 30,000 and 32,000 units. Determine the sales and variable cost volume variances, assuming volume is actually 32,000 units. Indicate whether the variances are favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.e.,
Business
1 answer:
Studentka2010 [4]2 years ago
5 0

Answer:

Favorable $16,000

Explanation:

Volume Variance : ( Actual production Units - Budgeted Units ) * Cost per unit

Volume Variance = (32,000 - 30,000) * $8 per unit

Volume variance = $16,000 Favorable

Volume variance is the measure of the units produced in comparison with the budgeted units. The favorable variance is one when actual units produced are more than budgeted.

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