Question

Dill industries sells computers and laptop. Data for this year operations is in the following table:...

Dill industries sells computers and laptop. Data for this year operations is in the following table:

Computers

laptops

Budgeted units

10,000

20,000

Budgeted price

$950

$750

Actual units

10,200

19,500

Actual price

$925

$780

REQUIRED:

Compute Sales Price Variance in the computers, Sales Price Variance in the laptops, Sales Volume Variance in the computers, Sales Volume Variance in the laptops, and Total Sales Variance.

Business   Finance   
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Homework Answers

Answer #1

Sales Price Variance for Computers = (Actual Price-budgeted Price)* Actual units

= (925-950)*10200

= $255,000(Unfavorable)

Sales Price Variance in the laptops= (780-750)*19500

= $585,000 (Favorable)

Sales Volume Variance in the computers = (Actual Units-Budgeted Units)*Budgeted Price

= (10200-10000)*950

= $190,000 (favorable)

Sales Volume Variance in the laptops = (19500-20000)*750

= $375,000(UnFavourable)

Total Sales Variance = -255000+585000+190000-375000 = $145000(Favourable)

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