Lola Inc. produces a product with the following revenue and cost structure Selli

Question

Lola Inc. produces a product with the following revenue and cost structure Selling price Variable cost per unit Fixed costs S86.13 40.11 800,000 Budgeted production and sales for the year ending December 31, 20x9 is 24337 units The actual results at the end of the year, December 31, 20x9, are given below Actual selling price Variable cost per unit Fixed costs Actual volume $80.46 23.41 850,000 29598 What is Lola's sales price variance for the year 20x9? Note: a negative number represents an unfavourable variance and a positive number represents a favourable Select one a $167821 b $242111 C. S-137991 d S-167821 The correct answer is. $-167821

Explanation / Answer

Sales price Variance = (Standard price of actual sales) - (Actual price of sales)

= (86.13 x 29598) - (80.46 x 29598)

=2549275074-2381455.08

=167820.66

=167821 (rounded)

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