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Comp Wiz sells computers. During May, it sold 300 computers at a $800 average price each. The May fixed budget included sales of350 computers at an average price of $770 each.AQ = Actual QuantitySQ Standard QuantityAP Actual PriceSP Standard Price1&2. Compute the sales price variance and the sales volume variance for May. Classify it as favorable or unfavorable. (Indicate theeffect of each variance by selecting for favorable, unfavorable, and no variance.)Flexible BudgetActual SalesBudgeted SalesAQАPAQSPSQSPXXY000

Question
Comp Wiz sells computers. During May, it sold 300 computers at a $800 average price each. The May fixed budget included sales of
350 computers at an average price of $770 each.
AQ = Actual Quantity
SQ Standard Quantity
AP Actual Price
SP Standard Price
1&2. Compute the sales price variance and the sales volume variance for May. Classify it as favorable or unfavorable. (Indicate the
effect of each variance by selecting for favorable, unfavorable, and no variance.)
Flexible Budget
Actual Sales
Budgeted Sales
AQ
АP
AQ
SP
SQ
SP
X
X
Y
0
0
0
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Comp Wiz sells computers. During May, it sold 300 computers at a $800 average price each. The May fixed budget included sales of 350 computers at an average price of $770 each. AQ = Actual Quantity SQ Standard Quantity AP Actual Price SP Standard Price 1&2. Compute the sales price variance and the sales volume variance for May. Classify it as favorable or unfavorable. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance.) Flexible Budget Actual Sales Budgeted Sales AQ АP AQ SP SQ SP X X Y 0 0 0

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Step 1

Step 1: Calculate the actual price:

Actual Sales
Actual quantityx |Actual Price
300
$800
$240,000
X
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Actual Sales Actual quantityx |Actual Price 300 $800 $240,000 X

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Step 2

Step 2: Calculate flexible budget:

Flexible budget
|Actual quantity x|Selling Price
$231,000
$770
300
X
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Flexible budget |Actual quantity x|Selling Price $231,000 $770 300 X

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Step 3

Step 3: Calculate bu...

Budget sales
|Standard Quantity |x|Standard Price
350
$770
$269,500
X
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Budget sales |Standard Quantity |x|Standard Price 350 $770 $269,500 X

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