A company provided the following partial income statements and detailed information for the past two yearsYEAR20212020ChangesSalesP900,000P480,000P420,000Cost of Sales396,000240,000156,000Gross Income504,000240,000264,000 Unit Selling PriceP375P300 Unit cost165150 Quantity sold2,4001,600 How much is the price variance?a. 180,000 Favorableb. 180,000 Unfavorablec. 144,000 Favorable

Profit per unit = sales - cost Profit per unit for 2021 = 375-165 = P210 Profit per unit for 2020 =…

Answered: A company provided the following…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter9: Evaluating Variances From Standard Costs

Section: Chapter Questions

Problem 24E: Rosenberry Company computed the following revenue variances for January: Revenue price variance...

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A company provided the following partial income statements and detailed information for the past two years

YEAR	2021	2020	Changes
Sales	P900,000	P480,000	P420,000
Cost of Sales	396,000	240,000	156,000
Gross Income	504,000	240,000	264,000

Unit Selling Price	P375	P300
Unit cost	165	150
Quantity sold	2,400	1,600

How much is the price variance?

a. 180,000 Favorable

b. 180,000 Unfavorable

c. 144,000 Favorable

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