Exerclse 6-2 Sheridan Sports sells volleyball kits that it purchases from a spor

Question

Exerclse 6-2 Sheridan Sports sells volleyball kits that it purchases from a sports equipment distributor. The following static budget based on sales of 1,340 kits was prepared for the year. Fixed operating expenses account for 54% of total operating expenses at this level of sales Sales Cost of goods sold (all variable) Gross margin Operating expenses Operating income $67,000 40,200 26,800 23,450 3,350 Assume that Sheridan Sports actually sold 1,407 volleyball kits during the year at a price of $38 per kit. Calculate the sales volume variance for sales revenue and cost of goods sold. (If variance is zero, select "Not Applicable" and enter O for the amounts.) Flexible Budget Sales Volume Variance Static Budget Unit Sales Sales revenue Cost of goods sold Question Attempts: 0 of 3 used

Explanation / Answer

Calculate sales volume variance for sales revenue and cost of goods variance :

Flexible budget sales volume variance Static budget Unit sales 1407 67 Units 1340 Sales revenue 70350 3350 Favorable 67000 Cost of goods sold 42210 2010 Unfavorable 40200

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