Question

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 |

Group of answer choices

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?

Group of answer choices

Sales volume variance

Sales price variance

Total sales variance

Answer #1

How many of the following variances are unfavorable?

Answer is 2

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

Answer is Sales price variance

XYZ Company's budgeted and actual results for last year are as
follows:
Master budget
Actual results
Price
$600
$700
Sales volume (units)
7,000
5,000
Unit VC
$200
$200
Fixed costs
$200,000
$200,000
Required:
(a) Compute budgeted and actual revenue, costs and profits:
Master budget
Actual
Sales volume (units)
Revenue
$
$
Variable costs
$
$
Contribution margin
$
$
Fixed costs
$
$
Profit
$
$
In (b)-(d) below, enter favorable and unfavorable variances as
positive and negative numbers, without...

Narcisco Publications established the following standard price
and costs for a hardcover picture book that the company
produces:
Standard price and variable costs
Sales price
$
90.00
Materials cost
18.00
Labor cost
9.00
Overhead cost
12.60
Selling, general, and administrative costs
14.40
Planned fixed costs
Manufacturing overhead
$
270,000
Selling, general, and administrative
108,000
Assume that Narcisco actually produced and sold 32,000 books.
The actual sales price and costs incurred follow.
Actual price and variable costs
Sales price
$
87.00...

Pricing Strategy, Sales Variances
Eastman, Inc., manufactures and sells three products: R, S, and
T. In January, Eastman, Inc., budgeted sales of the following.
Budgeted
Volume
Budgeted
Price
Product R
110,500
$26
Product S
149,300
23
Product T
21,200
21
At the end of the year, actual sales revenue for Product R and
Product S was $2,709,600 and $3,590,400, respectively. The actual
price charged for Product R was $24 and for Product S was $22. Only
$10 was charged for...

Pricing Strategy, Sales Variances
Eastman, Inc., manufactures and sells three products: R, S, and
T. In January, Eastman, Inc., budgeted sales of the following.
Budgeted
Volume
Budgeted
Price
Product R
114,900
$28
Product S
148,400
20
Product T
22,700
20
At the end of the year, actual sales revenue for Product R and
Product S was $3,159,000 and $3,081,800, respectively. The actual
price charged for Product R was $27 and for Product S was $19. Only
$10 was charged for...

Pricing Strategy, Sales Variances
Eastman, Inc., manufactures and sells three products: R, S, and
T. In January, Eastman, Inc., budgeted sales of the following.
Budgeted
Volume
Budgeted
Price
Product R
104,800
$28
Product S
150,000
23
Product T
20,900
23
At the end of the year, actual sales revenue for Product R and
Product S was $2,921,400 and $3,601,400, respectively. The actual
price charged for Product R was $27 and for Product S was $22. Only
$13 was charged for...

Factory Overhead Cost Variances
Thomas Textiles Corporation began November with a budget for
38,000 hours of production in the Weaving Department. The
department has a full capacity of 51,000 hours under normal
business conditions. The budgeted overhead at the planned volumes
at the beginning of November was as follows:
Variable overhead
$117,800
Fixed overhead
81,600
Total
$199,400
The actual factory overhead was $201,800 for November. The
actual fixed factory overhead was as budgeted. During November, the
Weaving Department had standard...

actory Overhead Cost Variances
The following data relate to factory overhead cost for the
production of 5,000 computers:
Actual:
Variable factory overhead
$97,000
Fixed factory overhead
32,000
Standard:
5,000 hrs. at $24
120,000
If productive capacity of 100% was 8,000 hours and the total
factory overhead cost budgeted at the level of 5,000 standard hours
was $132,000, determine the variable factory overhead Controllable
Variance, fixed factory overhead volume variance, and total factory
overhead cost variance. The fixed factory overhead rate...

TLA Inc. has budgeted for sales of 11,250 units of TS at a price
of $18 per unit. The actual sales for the period were 10,000 units
of TS at $19 per unit. What was the sales-volume variance for the
current period?
$23,750 favorable
$23,750 unfavorable
$22,500 favorable
$22,500 unfavorable

Pricing Strategy, Sales Variances
Eastman, Inc., manufactures and sells three products: R, S, and
T. In January, Eastman, Inc., budgeted sales of the following.
Budgeted
Volume
Budgeted
Price
Product R
118,800
$28
Product S
145,300
21
Product T
17,500
19
At the end of the year, actual sales revenue for Product R and
Product S was $3,190,200 and $2,986,800, respectively. The actual
price charged for Product R was $26 and for Product S was $19. Only
$9 was charged for...

Factory Overhead Cost Variances
The following data relate to factory overhead cost for the
production of 4,000 computers:
Actual:
Variable factory overhead
$116,400
Fixed factory overhead
30,000
Standard:
4,000 hrs. at $35
140,000
If productive capacity of 100% was 6,000 hours and the factory
overhead cost budgeted at the level of 4,000 standard hours was
$150,000, determine the variable factory overhead Controllable
Variance, fixed factory overhead volume variance, and total factory
overhead cost variance. The fixed factory overhead rate was...

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