1.
Concept Introduction:
Sales Price Variance: Sales price variance is used to measure the reflection due to the differing actual sales price as compared to the budgeted sales price.
Sales Volume Variance: Sales volume variance measures the reflection of the operations level if the capacity level is underutilized or overutilized in reference to the predicted production level.
Sales price variance and its favorable or not.
2.
Concept Introduction:
Sales Price Variance: Sales price variance is used to measure the reflection due to the differing actual sales price as compared to the budgeted sales price.
Sales Volume Variance: Sales volume variance measures the reflection of the operations level if the capacity level is underutilized or overutilized in reference to the predicted production level.
Sales volume variance and its favorable or not.
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- Sales Price Variance, Sales Volume Variance, Overall Sales Variance Saginaw Company is a garden products wholesale firm. In December, Saginaw Company expects to sell 22,000 bags of vegetable fertilizer at an average price of $5.50 per bag. Actual results are 22,750 bags sold at an average price of $5.40 per bag. Required: 1. Calculate the sales price variance for December.$fill in the blank 1 2. Calculate the sales volume variance for December.$fill in the blank 3 3. Calculate the overall sales variance for December.$fill in the blank 5 4. What if December sales were actually 21,800 bags? How would that affect the sales price variance? by $fill in the blank 8 The sales volume variance?$fill in the blank 9 The overall sales variance?$fill in the blank 11arrow_forwardComp Wiz sells computers. During May, it sold 350 computers at a $1,200 average price each. The May fixed budget included sales of 365 computers at an average price of $1,100 each. 1. Compute the sales price variance and classify it as favorable or unfavorable. 2. Compute the sales volume variance and classify it as favorable or unfavorable.arrow_forwardSales Price Variance, Sales Volume Variance, Overall Sales Variance Holland Company is a garden products wholesale firm. In December, Holland Company expects to sell 58,000 bags of vegetable fertilizer at an average price of $5.20 per bag. Actual results are 58,600 bags sold at an average price of $5.10 per bag. 1. Calculate the overall sales variance for Decemberarrow_forward
- Sales Price Variance, Sales Volume Variance, Overall Sales Variance Saginaw Company is a garden products wholesale firm. In December, Saginaw Company expects to sell 22,000 bags of vegetable fertilizer at an average price of $5.50 per bag. Actual results are 22,750 bags sold at an average price of $5.40 per bag. What if December sales were actually 21,800 bags? How would that affect the sales price variance? by $fill in the blank 8 The sales volume variance?$fill in the blank 9 The overall sales variance?$fill in the blank 11arrow_forwardRevenue variances Rockport Industries Inc. gathered the following data for March: Sales price per unit Number of units of sales Total sales Planned $150 x 12,500 Actual $144 x 12,900 $1,875,000 $1,857,600 Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. a. Compute the revenue price variance. b. Compute the revenue volume variance. $ c. Compute the total revenue variance.arrow_forwardRevenue variances Rockport Industries Inc. gathered the following data for March: Planned Actual Sales price per unit $150 $144 Number of units of sales × 12,500 × 12,900 Total sales $1,875,000 $1,857,600 Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. a. Compute the revenue price variance. $fill in the blank 1 b. Compute the revenue volume variance. $fill in the blank 3 c. Compute the total revenue variance. $fill in the blank 5arrow_forward
- Sales Price Variance, Sales Volume Variance, Overall Sales Variance Saginaw Company is a garden products wholesale firm. In December, Saginaw Company expects to sell 26,000 bags of vegetable fertilizer at an average price of $5.40 per bag. Actual results are 26,800 bags sold at an average price of $5.30 per bag. What if December sales were actually 25,800 bags? How would that affect the sales price variance?Decreases by $fill in the blankarrow_forwardRevenue variances Dickinsen Company gathered the following data for December: Sales price per unit Number of units of sales Total sales Planned Actual $5.80 $6.00 x 820,000 x 805,000 $4,756,000 $4,830,000 Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. a. Compute the revenue price variance. b. Compute the revenue volume variance. c. Compute the total revenue variance.arrow_forwardQuestion 4- Variance Analysis Required: The owners can see that the company sold a different amount of units than budgeted. They have asked vou to determine the flexible budget amounts and calculate the variances when comparing the flexible budget to the actual results S marksl. Flexible Budget Report Variance (show Static Flexible or Budget Budget Actual as positive Unfavorable Amount Amount Results amount) (U) Sales in Linits 6,500 6,200 Sales $ 650,000 650,000 Variable Cost 260,000 275,500 Foed Cost 26,000 25,000 Jet Operating Income 364 000 349,500arrow_forward
- Mia Wiz sells computers. During May, it sold 300 computers at a $700 per unit price. The fixed budget for May predicted sales of 350 computers at an per unit price of $660. 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. Identify it as favorable or unfavorable. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.) Actual Sales Flexible Budget Budgeted Salesarrow_forwardMia Wiz sells computers. During May, it sold 500 computers at a $800 per unit price. The fixed budget for May predicted sales of 550 computers at an per unit price of $780. AQ = Actual QuantitySQ = Standard QuantityAP = Actual PriceSP = Standard Price 1&2. Compute the sales price variance and the sales volume variance for May. Identify it as favorable or unfavorable. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.)arrow_forwardMia Wiz sells computers. During May, it sold 400 computers at a $900 per unit price. The fixed budget for May predicted sales of 450 computers at an per unit price of $850. 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. Identify it as favorable or unfavorable. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.) Actual Sales Flexible Budget Budgeted Sales $ $ Sales price variance Sales volume variance %24arrow_forward
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