Western Company’s budgeted and actual sales for 2009 were as follows. Product Bu
ID: 2756220 • Letter: W
Question
Western Company’s budgeted and actual sales for 2009 were as follows.
Product
Budgeted Sales
Actual Sales
A
10,250 units at $16.00 per unit
12,130 units at $15.60 per unit
B
15,560 units at $12.00 per unit
12,940 units at $12.40 per unit
Part (a): Calculate the sales volume variance.
Part (b): Calculate the sales price variance.
Part (c): Calculate the total sales variance.
Product
Budgeted Sales
Actual Sales
A
10,250 units at $16.00 per unit
12,130 units at $15.60 per unit
B
15,560 units at $12.00 per unit
12,940 units at $12.40 per unit
Explanation / Answer
(a) Sales volume variance = (Actual Sales Unit - Budgeted Sales Unit )* Standard Price A Sales volume variance = (12130-10250) *16 30080 Fav B sales volume variance = ( 12940-15560) * 12 31440 Adv (b) Sales Price Variance = (Actual Price - Standard Price ) * Actual Sales Unit A sales Price Variance = ( 15.60-16) * 12130 4852 Adv B sales Price Variance = (12.40-12) * 12490 4996 Fav ( c ) Total Sales Variance = Actual Sales - Budgeted Sales A Total Sales Variance = (12130*15.60)-(10250*16.00) 25228 Fav B Total Sales Variance = (12940*12.40)-(15560*12) 26264 Adv
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