Final answer:
The sales volume variance for Marsh, Inc. is calculated by subtracting the flexible budget sales from the actual sales, resulting in a favorable variance of $100,000.
Step-by-step explanation:
To calculate the sales volume variance, we need to compare the actual sales to the flexible budget sales, as it provides a benchmark for what sales should have been given the actual level of activity. The formula for sales volume variance is the difference between the actual sales and the flexible budget sales multiplied by the standard selling price per unit. However, as we don't have the standard selling price per unit provided in the question, we will use the total sales figures for our variance calculation.
The sales volume variance would thus be calculated as follows:
Actual sales - Flexible budget sales = Sales volume variance
$560,000 - $460,000 = $100,000
The sales volume variance is $100,000, which indicates that Marsh, Inc. sold $100,000 more than what was anticipated in the flexible budget. This is a favorable variance as actual sales were higher than the expected level of sales for the actual volume of activity.