Question

Exercise 21-23 Computing and interpreting sales variances LO A1 Comp Wiz sells computers. During May, it sold 400 computers at a $900 average price each. The May fixed budget Included sales of 450 computers at an average price of $870 each. AC Actual Quantity SQ - Standard Quantity AP - Actual Price SP - Standard Price 182. Compute the sales price variance and the sales volume variance for May. Classify it as favorable or unfavorable, indicate the effect of each variance by selecting for favorable, unfavorable, and no variance.) Answer is not complete. Actual Sales AQ AP Flexible Budget AQ X SP 400 $ 870 400 $ Budgeted Sales SOX 450 X $ $ 1.500 SP 870 $360 000 348.000 < Prev 2 of 10 Next > Search or enter address zxc v BN ME C command command opti

what is total sales ?

Answer 1

Solution :

Total sales varinance = sales price variance + sales volume variance

= $12000 favoable + ($43500 unfavorable)

= $31,500 Unfavorable