Question

How many of the following variances are unfavorable? Item Budget Actual Sales price \$350 \$380 Sales...

How many of the following variances are unfavorable?

 Item Budget Actual Sales price \$350 \$380 Sales revenue \$15,000 \$12,500 Cost of goods sold \$10,000 \$9,000 Selling and administrative expenses \$3,200 \$3,500 Labor costs \$1,800 \$1,680 Production volume 1,300 units 1,260 units

4

1

0

2

5

3

6

Favors Publishing has the following budgeted and actual amounts

 Budgeted Actual Sales price / book \$90.00 \$87.00 Book sales 30,000 books 32,000 books

Calculate Favor's Publishing's sales volume variance. Enter a favorable variance as positive and a negative variance as negative.

Favors Publishing has the following budgeted and actual amounts

 Budgeted Actual Sales price / book \$90.00 \$87.00 Book sales 30,000 books 32,000 books

Calculate Favor's Publishing's sales price variance. Enter a favorable variance as positive and a negative variance as negative.

Favors Publishing has the following budgeted and actual amounts

 Budgeted Actual Sales price / book \$90.00 \$87.00 Book sales 30,000 books 32,000 books

Calculate Favor's Publishing's total sales variance. Enter a favorable variance as positive and a negative variance as negative.

A company has the following information

 Budgeted Actual Sales volume 50,000 units 54,000 units Sales price \$4.00 / unit \$4.10 / unit

A favorable variance of \$5,400 is which variance?

Sales volume variance

Sales price variance

Total sales variance

How many of the following variances are unfavorable?
Sales Volume Variance and Selling and administrative expenses variance
The above answer is based on static budget variance, flexible budget has not been considered for variances

Sales volume Variance = (Actual units sold - Budgeted units sold) x Budgeted price per unit
= (32000-30000) x \$ 90 = \$180000

Sales Price Variance = (Actual price - Standard Price) x Actual units sold
= (\$87 -90) x 32000 = (\$96000)

Total Sales Variance = Actua Sales - Budgeted Sales
= 32000 x \$87 - 30000 x \$90 = \$84000

Sales Price variance = (\$4.10 - 4) x 54000 = \$5400