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

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

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Homework Answers

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

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