3 Sunny Enterprise, a manufacturing company, produces a special component part andprovided the following budgeted and actual information:Budget:Sales tunits)80,000Selling priceRM18.00 per unitVariable costRM14.00 per unitActual:Sales lunits)72,000Selling priceRM1640 per unitVariable costRM12.40 per unitRequired:approach.b. Explain the possible causes of those variances.

Sales price variance (SPV) = (AP - BP) * AO Where AP = actual price = 16.40 BP = budgeted price = 18…

3 Sunny Enterprise, a manufacturing company, produces a special component part and le provided the following budgeted and actual information: Budget: Sales lunits) 80,000 Selling price RM18.00 per unit Variabie cost RM14.00 per unit Actual: Sales lunits) 72,000 Selling price RM16 40 per unt Variable cost HM1240 per unit Required: a. Calculate all the appropriate sales variances using the standard vanable coms approach. b. Explain the possible causes of those vatiances.

3 Sunny Enterprise, a manufacturing company, produces a special component part and le provided the following budgeted and actual information: Budget: Sales lunits) 80,000 Selling price RM18.00 per unit Variabie cost RM14.00 per unit Actual: Sales lunits) 72,000 Selling price RM16 40 per unt Variable cost HM1240 per unit Required: a. Calculate all the appropriate sales variances using the standard vanable coms approach. b. Explain the possible causes of those vatiances.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 15EB: Judges Gavel uses this information when preparing their flexible budget: direct materials of $3 per...

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