Cardoza Construction Materials Company has a sales office that sells concrete culvert pipes to property developers
The sales office is a revenue center and prepares a monthly responsibility report. The following information is provided.
Revenue Center Responsibility Report
Product
Type Actual
Sales
Revenue Flexible
Budget
Variance U/F Flexible Budget Sales
Volume Variance U/F Static
Budget
40 inch $31,500 $30,750 $40,600
36 inch long 40,150 42,100 33,000
36 inch short 36,100 33,200 31,000
32 inch 19,100 20,300 28,450
What is the sales volume variance for the 36-inch long pipe?
A) $1,950 U
B) $9,100 F
C) $9,850 U
D) $750 F
B .B) Sales volume variance = Actual sales revenue at standard price - Static budget sales
Sales volume variance = $42,100 - $33,000 = $9,100
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