Question

Goodard Inc. planned to use $156 of material per unit but actually used $147 of material per​ unit, and planned to make 1,140 units but actually made 900 units. The sales−volume variance for materials is​ ________.

Answer 1

Answer:

2700, favorable

Explanation:

To calculate the sales-volume variance for materials, we use the equation as follows;

Sales-volume variance for materials = (Actual Price - Standard Price)*Aqual Quantity

sales-volume variance for materials = (147-150)*900

sales-volume variance for materials = 2700 Favorable