The managerial accountant at Consumer Candy Company is assessing a sales volume variance between fiscal years 2011 and 2012. In 2011, sales volume was 1,670,000 cases of mixed candy; and, in 2012, a sales volume of 1,495,000 was recorded
The price per case of Candid Candy Mixed Candy was $68.42 for both years.
Required
Compute the revenue effect of growth in 2011 and 2012. Identify whether the variance is favorable, F, or unfavorable, U.
A) $4,973,000 F
B) $11,973,500 U
C) $9,785,000 F
D) $11,973,500 F
E) $9,785,000 U
B
Explanation: B) [(1,495,000 - 1,670,000 ) × $68.42 per case] = $11,973,500 U
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