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10. Additional Exercises on GP Variance Analysis 10A) Pharsa Company had the following results in May: Sales Cost of goods sold (P 5 per unit) Gross profit Actual sales were 500 units higher than the budgeted sales. Determine the FALSE statement. a. The sales price variance is P 1,500 unfavorable. b. The sales volume variance is P 4,000 favorable. c. The cost price variance is zero (0). d. The cost volume variance is P 2,500 favorable. Items 10B to 10F are based on the following information The management of Marvel Company asked you to submit an analysis of the increase in th in 2021 based on the past two-year comparative income statements, which are shown belo a. P 20,000 b. P 35,000 Net Sales Cost of Sales Gross Profit Budget P 160,000 100,000 P 60,000 2021 P 1,237,500 950,000 P 287,500 The selling price increased by 12.5% beginning January 1, 2021. 10B) What is the increase in gross profit due to increase in volume? (VOLUME FACTOR) C. P 50,000 d. P 100,000 a. b. 10% 10E) What is the percentage change in volume? 9% 10C) How much is the gross profit decline due to increase in cost? (COST FACTOR) a. P 70,000 P 88,000 b. P 80,000 P 97,500 10F) What is the percentage change in cost? a. 10.8% b. 10% C. d. 10D) The increase in sales prices caused an increase in gross profit by (PRICE FACTOR) a. P 100,000 C. P 137,500 b. P 110,000 d. P 237,500 Actual P 162,500 102,500 P 60,000 2020 P 1,000,000 800,000 P 200,000 C. 11% d. 12.75% C. d. 8.675% 7.95%

10. Additional Exercises on GP Variance Analysis 10A) Pharsa Company had the following results in May: Sales Cost of goods sold (P 5 per unit) Gross profit Actual sales were 500 units higher than the budgeted sales. Determine the FALSE statement. a. The sales price variance is P 1,500 unfavorable. b. The sales volume variance is P 4,000 favorable. c. The cost price variance is zero (0). d. The cost volume variance is P 2,500 favorable. Items 10B to 10F are based on the following information The management of Marvel Company asked you to submit an analysis of the increase in th in 2021 based on the past two-year comparative income statements, which are shown belo a. P 20,000 b. P 35,000 Net Sales Cost of Sales Gross Profit Budget P 160,000 100,000 P 60,000 2021 P 1,237,500 950,000 P 287,500 The selling price increased by 12.5% beginning January 1, 2021. 10B) What is the increase in gross profit due to increase in volume? (VOLUME FACTOR) C. P 50,000 d. P 100,000 a. b. 10% 10E) What is the percentage change in volume? 9% 10C) How much is the gross profit decline due to increase in cost? (COST FACTOR) a. P 70,000 P 88,000 b. P 80,000 P 97,500 10F) What is the percentage change in cost? a. 10.8% b. 10% C. d. 10D) The increase in sales prices caused an increase in gross profit by (PRICE FACTOR) a. P 100,000 C. P 137,500 b. P 110,000 d. P 237,500 Actual P 162,500 102,500 P 60,000 2020 P 1,000,000 800,000 P 200,000 C. 11% d. 12.75% C. d. 8.675% 7.95%

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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10. Additional Exercises on GP Variance Analysis 10A) Pharsa Company had the following results in May: Sales Cost of goods sold (P 5 per unit) Gross profit Actual sales were 500 units higher than the budgeted sales. Determine the FALSE statement. a. The sales price variance is P 1,500 unfavorable. b. The sales volume variance is P 4,000 favorable. c. The cost price variance is zero (0). d. The cost volume variance is P 2,500 favorable. Net Sales Cost of Sales Gross Profit Budget P 160,000 100,000 P 60,000 Items 10B to 10F are based on the following information The management of Marvel Company asked you to submit an analysis of the increase in the in 2021 based on the past two-year comparative income statements, which are shown below 2021 P 1,237,500 950,000 P 287,500 The selling price increased by 12.5% beginning January 1, 2021. 10B) What is the increase in gross profit due to increase in volume? (VOLUME FACTOR) a. P 20,000 C. P 50,000 b. P 35,000 d. 10E) What is the percentage change in volume? a. 9% b. 10% 10F) What is the percentage change in cost? a. 10.8% b. 10% 10C) How much is the gross profit decline due to increase in cost? (COST FACTOR) a. P 70,000 P 88,000 b. P 80,000 P 97,500 C. d. 2020 P 1,000,000 800,000 P 200,000 10D) The increase in sales prices caused an increase in gross profit by (PRICE FACTOR) a. P 100,000 P 137,500 b. P 110,000 P 237,500 C. d. Actual P 162,500 102,500 P 60,000 P 100,000 C. d. C. 11% d. 12.75% 8.675% 7.95%
Transcribed Image Text:10. Additional Exercises on GP Variance Analysis 10A) Pharsa Company had the following results in May: Sales Cost of goods sold (P 5 per unit) Gross profit Actual sales were 500 units higher than the budgeted sales. Determine the FALSE statement. a. The sales price variance is P 1,500 unfavorable. b. The sales volume variance is P 4,000 favorable. c. The cost price variance is zero (0). d. The cost volume variance is P 2,500 favorable. Net Sales Cost of Sales Gross Profit Budget P 160,000 100,000 P 60,000 Items 10B to 10F are based on the following information The management of Marvel Company asked you to submit an analysis of the increase in the in 2021 based on the past two-year comparative income statements, which are shown below 2021 P 1,237,500 950,000 P 287,500 The selling price increased by 12.5% beginning January 1, 2021. 10B) What is the increase in gross profit due to increase in volume? (VOLUME FACTOR) a. P 20,000 C. P 50,000 b. P 35,000 d. 10E) What is the percentage change in volume? a. 9% b. 10% 10F) What is the percentage change in cost? a. 10.8% b. 10% 10C) How much is the gross profit decline due to increase in cost? (COST FACTOR) a. P 70,000 P 88,000 b. P 80,000 P 97,500 C. d. 2020 P 1,000,000 800,000 P 200,000 10D) The increase in sales prices caused an increase in gross profit by (PRICE FACTOR) a. P 100,000 P 137,500 b. P 110,000 P 237,500 C. d. Actual P 162,500 102,500 P 60,000 P 100,000 C. d. C. 11% d. 12.75% 8.675% 7.95%
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