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1. November sales-price variance 2. November sales-volume variance

1. November sales-price variance 2. November sales-volume variance

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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White Mountain Sled Company manufactures children's snow sleds. The company's performance report for November is as follows. Sleds sold Sales Variable costs Contribution margin Fixed costs Operating income Actual 5,000 $ 240,000 150,000 $ 90,000 84,000 $ 6,000 1. November sales-price variance 2. November sales-volume variance Budget 6,000 $ 300,000 180,000 $ 120,000 80,000 $ 40,000 The company uses sales variance analysis to explain the difference between budgeted and actual sales revenue. Required: Compute the following variances and indicate whether each is favorable or unfavorable. Note: Select "None" for no effect (i.e., zero variance).
Transcribed Image Text:White Mountain Sled Company manufactures children's snow sleds. The company's performance report for November is as follows. Sleds sold Sales Variable costs Contribution margin Fixed costs Operating income Actual 5,000 $ 240,000 150,000 $ 90,000 84,000 $ 6,000 1. November sales-price variance 2. November sales-volume variance Budget 6,000 $ 300,000 180,000 $ 120,000 80,000 $ 40,000 The company uses sales variance analysis to explain the difference between budgeted and actual sales revenue. Required: Compute the following variances and indicate whether each is favorable or unfavorable. Note: Select "None" for no effect (i.e., zero variance).
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