Question

Presented is information pertaining to an item sold by Wheeping Creek General Store: Actual Budget Unit sales 300 250 Unit selling price $ 52 $ 50 Unit standard variable costs (40) (40) Unit contribution margin $ 12 $ 10 Revenues $ 7,800 $ 6,250 Standard variable costs (6,000) (5,000) Contribution margin at standard costs $ 1,800 $ 1,250 Compute the revenue, sales price, and the sales volume variances. Revenue variance $Answer F U Mark 1.00 out of 1.00 Sales price variance $Answer F U Mark 1.00 out of 1.00 Sales volume variance $Answer F U Mark 1.00 out of 1.00

Answer 1

	Actual	budget
Unit sales	300	250
Unit selling price	$52	$50
Sales	$15600	$12500

1) revenue varaince = actual revenue - standard revenue

= $15600 - $12500

= $3100

2) sales price variance = (actual price - standard price) × actual sale unit

= ($52 - $50) × 300

= $600 F

3) sales volume variance = (actual unit sold - budgeted unit sold) × standard selling price

= (300 - 250) × 50

= $2500 F

If you have any query please commeny and

DO GIVE POSITIVE RATING