Creepers, Inc What Is the Sales Volume Variance for Spiders?
A) $0

question 107

Multiple Choice

Creepers, Inc., manufactures stuffed spiders and mummies. During September the following information was gathered: $\begin{array}{lrrr}&\text { Spiders } & \text { Mummies } \\\text { Units sold } & 6,900 & 3,100 \\\text { Budgeted sales (units) } & 7,500 & 2,500 \\\text { Contribution margin per unit: } & & \\\text { Actual } & \$ 3.75 & \$ 5.75 \\\text { Budgeted } & \$ 2.75 & \$ 5.25\end{array}$ What is the sales volume variance for Spiders?

• A) $0.
• B) $1,125 favorable.
• C) $1,500 favorable.
• D) $1,650 unfavorable.
• E) $12,375 unfavorable.

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Definitions:

Journal Entries

Journal entries are the method of recording all the financial transactions of a business in the accounting system, as part of the double-entry bookkeeping system.

Treasury Stock

Shares of a company's own stock held by the company itself, acquired through buybacks.

Financial Condition

Refers to the current state of a company's financial health and stability, often assessed through analyzing balance sheets, income statements, and cash flow statements.