A company produces 3 products with the following budget information available: A B C Sales GH₵14 GH₵15 GH₵18 Standard full cost GH₵10 GH₵10 GH₵13 Budget Production 10,000 units 13,000 units 9,000 units The actual sales price and production were: A B C Sales price GH₵14.5 GH₵15.15 GH₵19.00 Budget production 9,500units 13,500units 8,500units You are required to calculate: The sales price variance. The sales volume profit variance. The sales mix variance profit. The sales quantity profit volume variance.
A company produces 3 products with the following budget information available: A B C Sales GH₵14 GH₵15 GH₵18 Standard full cost GH₵10 GH₵10 GH₵13 Budget Production 10,000 units 13,000 units 9,000 units The actual sales price and production were: A B C Sales price GH₵14.5 GH₵15.15 GH₵19.00 Budget production 9,500units 13,500units 8,500units You are required to calculate: The sales price variance. The sales volume profit variance. The sales mix variance profit. The sales quantity profit volume variance.
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter18: Pricing And Profitability Analysis
Section: Chapter Questions
Problem 9CE: Budgeted unit sales for the entire countertop oven industry were 2,500,000 (of all model types), and...
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A company produces 3 products with the following budget information available:
|
A |
B |
C |
Sales |
GH₵14 |
GH₵15 |
GH₵18 |
|
GH₵10 |
GH₵10 |
GH₵13 |
Budget Production |
10,000 units |
13,000 units |
9,000 units |
The actual sales price and production were:
|
A |
B |
C |
Sales price |
GH₵14.5 |
GH₵15.15 |
GH₵19.00 |
Budget production |
9,500units |
13,500units |
8,500units |
|
|
|
|
You are required to calculate:
- The sales price variance.
- The sales volume profit variance.
- The sales mix variance profit.
- The sales quantity profit volume variance.
QUESTION 2
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