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Advanced variances

7.3 Sales quantity variance

A sales quantity variance indicates the effect on profit of selling a different total
quantity from the budgeted total quantity. Like the mix variance, it can be calculated
in one of two ways:

Method 1

The difference between actual sales volume in the standard mix and budgeted sales
valued at the standard profit per unit:

Product Actual Quantity, Budgeted Sales Difference @ Standard Variance
Standard Mix Quantity, Standard price
(AQSM) Mix (BQSM)

P1 A units D units A – D $M1 $Var
(F/A)

P2 B units E units B – E $M2 $Var
(F/A)
P3 C units F units C – F $M3 $Var
(F/A)
$Total
sales
quantity
(F/A)

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