A company produces three products with the following budget information available: A B Sales GHC14 GHC15 GHC18 Standard full cost GHC10 GHC10 GHC13 Budget Production 10,000 units 13,000 units 9,000 units The actual sales price and production were: A в C Sales price GHC14.5 GHC15.15 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

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 20E: Eastman, Inc., manufactures and sells three products: R, S, and T. In January, Eastman, Inc.,...
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A company produces three products with the following budget information available:
A
в
Sales
GHC14
GHC15
GHC18
Standard full cost
GHC10
GHC10
GHC13
Budget Production
10,000 units
13,000 units 9,000 units
The actual sales price and production were:
A
B
Sales price
GHC14.5
GHC15.15
GHC19.00
Budget production
9,500units
13,500units
8,500units
You are required to calculate:
i. The sales price variance
ii.
The sales volume profit variance
ii.
The sales mix variance profit
iv.
The sales quantity profit volume variance
Transcribed Image Text:A company produces three products with the following budget information available: A в Sales GHC14 GHC15 GHC18 Standard full cost GHC10 GHC10 GHC13 Budget Production 10,000 units 13,000 units 9,000 units The actual sales price and production were: A B Sales price GHC14.5 GHC15.15 GHC19.00 Budget production 9,500units 13,500units 8,500units You are required to calculate: i. The sales price variance ii. The sales volume profit variance ii. The sales mix variance profit iv. The sales quantity profit volume variance
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