Which of the Following Statements Is Incorrect?
A) the Sales

question 99

Multiple Choice

$\begin{array}{lcc}\text { Item to Classify } &\text { Standard } &\text {Actual }\\\text { Sales volume } & 100,000 \text { units } &96,000 \text { units }\\\text { Sales price } & \$ 4 \text { per unit }&\$3.90 \text { per unit } \\\text { Material usage } & 40,000 \text { gallons } &42,000 \text { gallons }\\ \text { Labor price } & 12.50\text { per hour }&12.45 \text { per hour }\end{array}$ Which of the following statements is incorrect?

• A) The sales volume variance is unfavorable.
• B) The materials usage variance is unfavorable.
• C) The sales price variance is favorable.
• D) The labor price variance is favorable.

---

Definitions:

Market Value

The present cost for buying or selling an asset or service on the open market.

Variable Manufacturing Costs

Costs within the manufacturing process that vary directly with the level of production output, such as raw materials and direct labor.

Sales Mix

The combination of different products or services sold by a company, impacting its overall profitability and performance.

Croquet Set

A collection of equipment used for playing croquet, a lawn game involving hitting plastic or wooden balls through hoops with a mallet.