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An equipment distributor sells two models, basic and deluxe. The following information relates to its master budget: Basic Deluxe Sales (units) Sales price per unit 21,000 3,000 $16,000 $27,000 Variable costs per unit $13,500 $23,000 Actual sales were 15,000 basic models and 5,000 deluxe models. The actual sales prices were the same as the budgeted sales prices for both models. What is the sales quantity variance for the deluxe model? A) $2,000,000 B) $1,800,000 OC) $850,000 OD) $465,000

An equipment distributor sells two models, basic and deluxe. The following information relates to its master budget: Basic Deluxe Sales (units) Sales price per unit 21,000 3,000 $16,000 $27,000 Variable costs per unit $13,500 $23,000 Actual sales were 15,000 basic models and 5,000 deluxe models. The actual sales prices were the same as the budgeted sales prices for both models. What is the sales quantity variance for the deluxe model? A) $2,000,000 B) $1,800,000 OC) $850,000 OD) $465,000

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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An equipment distributor sells two models, basic and deluxe. The following information relates to its master budget: Basic Deluxe Sales (units) Sales price per unit 21,000 3,000 $16,000 $27,000 Variable costs per unit $13,500 $23,000 Actual sales were 15,000 basic models and 5,000 deluxe models. The actual sales prices were the same as the budgeted sales prices for both models. What is the sales quantity variance for the deluxe model? A) $2,000,000 B) $1,800,000 OC) $850,000 OD) $465,000
Transcribed Image Text:An equipment distributor sells two models, basic and deluxe. The following information relates to its master budget: Basic Deluxe Sales (units) Sales price per unit 21,000 3,000 $16,000 $27,000 Variable costs per unit $13,500 $23,000 Actual sales were 15,000 basic models and 5,000 deluxe models. The actual sales prices were the same as the budgeted sales prices for both models. What is the sales quantity variance for the deluxe model? A) $2,000,000 B) $1,800,000 OC) $850,000 OD) $465,000
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