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. A company produces 3 products with the following budget information available:ABCSalesGHC14GHC15GHC18Standard full costGHC10GHC10GHC13Budget Production10,000 units13,000 units 9,000 unitsThe actual sales price and production were:AВCSales priceGHC14.5GH¢15.15GHC19.00Budget production9,500units13,500units8,500units

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Answered: You are required to calculate: i. The…

You are required to calculate: i. The sales price variance. ii. The sales volume profit variance. iii. The sales mix variance profit.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 16EB: Using the following budgeted information for production of 5,000 and 12,000 units, prepare a...

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Question

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.

A company produces 3 products with the following budget information available:
A
B
C
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
GH¢15.15
GHC19.00
Budget production
9,500units
13,500units
8,500units

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