A company produces three 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: i. The sales price variance. ii. The sales volume profit variance. iii. The sales mix variance profit . iv. The sales quantity profit volume variance.
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
A company produces three 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:
i.
The sales price variance.
ii.
The sales volume profit variance.
iii.
The sales mix variance profit .
iv.
The sales quantity profit volume variance.
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