Timberlake company planned for a production and sales volume of 12,000 units. however, the company actually made and sold 13,000 units. per unit standards static budget flexible budget number of units 12,000 13,000 sales revenue $ 65.00 $ 780,000 $ 845,000 variable manufacturing costs: materials $ 11.00 132,000 143,000 labor $ 9.00 108,000 117,000 overhead $ 4.20 50,400 54,600 variable general, selling, and administrative costs $ 11.00 132,000 143,000 contribution margin 357,600 387,400 fixed costs manufacturing overhead 100,800 100,800 general, selling, and administrative costs 45,000 45,000 net income $ 211,800 $ 241,600 what was the sales volume variance?

$65,000 Favorable  

Explanation:

Volume variance compute the difference due to volume of sales budgeted and actual sales qty.Budgeted Selling pricec =780000 /12000 = 65Sales volume variance = Budgeted Selling price (Actual sales qty-Budgeted Sales qty)  

65.00 (13000-12000) = 65000 Fav

 

Answer is $ 65000 Favorable      

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