Comp Wiz sells computers. During May 2008, it sold 350 computers at a $1,200 average price each. The May 2008 budget included sales of 365 computers at an average price of $1,100 each. Compute the sales price variance and the sales volume variance for May 2008.

Comp Wiz sells computers. During May 2008, it sold 350 computers at a $1,200 average price each. The May 2008 budget included sales of 365 computers at an average price of $1,100 each. Compute the sales price variance and the sales volume variance for May 2008.

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter9: Evaluating Variances From Standard Costs

Section: Chapter Questions

Problem 25E: Lowell Manufacturing Inc. has a normal selling price of 20 per unit and has been selling 125,000...

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Question

Subject = General Account

Comp Wiz sells computers. During May 2008, it sold 350 computers at
a $1,200 average price each. The May 2008 budget included sales of
365 computers at an average price of $1,100 each.
Compute the sales price variance and the sales volume variance for
May 2008.

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Comp Wiz sells computers. During May 2008, it sold 350 computers at a $1,200 average price each. The May 2008 budget included sales of 365 computers at an average price of $1,100 each. Compute the sales price variance and the sales volume variance for May 2008.
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