Assume the actual sales volume is 74,500 units and the budgeted sales volume is 76,000 units. If the actual sales price is $7.20 and the budgeted sales price is $7.80, what is the sales volume variance? a) $11,700 unfavorable b) $11,700 favorable c) $10,500 unfavorable d) $10,500 favorable

Assume the actual sales volume is 74,500 units and the budgeted sales volume is 76,000 units. If the actual sales price is $7.20 and the budgeted sales price is $7.80, what is the sales volume variance? a) $11,700 unfavorable b) $11,700 favorable c) $10,500 unfavorable d) $10,500 favorable

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter9: Profit Planning And Flexible Budgets

Section: Chapter Questions

Problem 20MCQ: A firm comparing the actual variable costs of producing 10,000 units with the total variable costs...

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Which of the following statements is not correct? A. The sales budget is computed by multiplying estimated sales by the sales price. B. The production budget begins with the sales estimated for each period. C. The direct materials budget begins with the sales estimated for each period. D. The sales budget is typically the first budget prepared.
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Planned sales are 10,000 units at $7.00 per unit. Actual sales are 11,000 units at $6.50 per unit. Which of the following statements is not true? a. The revenue volume variance is favorable. b. The total revenue variance is unfavorable. c. The revenue volume variance is $7,000. d. The revenue price variance is unfavorable.
Determine the flexible budget variance if the sales volume variance is $134,000 F and static - budget variance is $123,000 F. Indicate whether the variance is favourable or unfavourable. Do not enter dollar signs or commas in the input boxes. Enter the variance amount as a positive value.
PLEASE ANSWER THE FOLLOWING QUESTIONS: Requirements 1. Compute the total sales-volume variance, the total sales-mix variance, and the total sales-quantity variance. (Calculate all variances in terms of contribution margin.) Show results for each product in your computations. 2. What inferences can you draw from the variances computed in requirement 1? Data table Budget for 2020 Selling Variable Cost Cartons Product Price per Carton Sold Kostor $11.00 $ Limba $ 23.00 $ 6.40 16.15 Actual for 2020 Selling Variable Cost Cartons Price per Carton Sold 7.40 138,600 16.35 59,400 132,000 $11.60 S 88,000 $ 24.40 $
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
1- Given the following information is the variance favorable or unfavorable? Flexible Budget Sales $100,000 Actual Sales $95,000 Group of answer choices Favorable/Unfavorable? 2- Given the following information is the variance favorable or unfavorable? Master Budget Variable Costs $100,000 Flexible Budget Variable Costs $95,000 Group of answer choices Favorable/Unfavorable? 3- Given the following information is the variance favorable or unfavorable? Master Budget Sales $100,000 Flexible Budget Sales $95,000 Group of answer choices Favorable/Unfavorable? 4- Given the following information is the variance favorable or unfavorable? Flexible Budget Fixed Costs $100,000 Actual Fixed Costs $95,000 Group of answer choices Favorable/Unfavorable?