Actual sales price is 14% higher than budgeted, actual sales volume in units is 10% lower than budgeted, actual sales revenue in dollars is 2.6% higher than budgeted, actual input prices are 5% lower than budgeted, and actual input quantities per unit are 5% lower than budgeted. Characterize sales price and sales volume variances as favorable (F) or unfavorable (U): Osales price variance = F; sales volume variance = F O sales price variance = U; sales volume variance = U O not enough information O sales price variance = F; sales volume variance = U O sales price variance = U; sales volume variance = F

Actual sales price is 14% higher than budgeted, actual sales volume in units is 10% lower than budgeted, actual sales revenue in dollars is 2.6% higher than budgeted, actual input prices are 5% lower than budgeted, and actual input quantities per unit are 5% lower than budgeted. Characterize sales price and sales volume variances as favorable (F) or unfavorable (U): Osales price variance = F; sales volume variance = F O sales price variance = U; sales volume variance = U O not enough information O sales price variance = F; sales volume variance = U O sales price variance = U; sales volume variance = F

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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Question

Actual sales price is 14% higher than budgeted, actual
sales volume in units is 10% lower than budgeted, actual
sales revenue in dollars is 2.6% higher than budgeted,
actual input prices are 5% lower than budgeted, and
actual input quantities per unit are 5% lower than
budgeted.
Characterize sales price and sales volume variances as
favorable (F) or unfavorable (U):
sales price variance = F; sales volume variance = F
O sales price variance = U; sales volume variance = U
not enough information
sales price variance = F; sales volume variance = U
O sales price variance = U; sales volume variance = F

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