Sales VariancesPresented is information pertaining to an item sold by Winding Creek General Store: ActualBudgetUnit sales135110Unit selling price$28$23Unit standard variable costs(20)(20)Unit contribution margin$8$3Revenues$3,780$2,530Standard variable costs(2,700)(2,200)Contribution margin at standard costs$1,080$330Compute the revenue, sales price, and the sales volume variances. Revenue varianceAnswer FUSales price variance$Answer FUSales volume variance$Answer FU

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Answered: Compute the revenue, sales price, and…

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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Sales Variances
Presented is information pertaining to an item sold by Winding Creek General Store:

	Actual	Budget
Unit sales	135	110
Unit selling price	$28	$23
Unit standard variable costs	(20)	(20)
Unit contribution margin	$8	$3
Revenues	$3,780	$2,530
Standard variable costs	(2,700)	(2,200)
Contribution margin at standard costs	$1,080	$330

Compute the revenue, sales price, and the sales volume variances.

Revenue variance	Answer
	F U
Sales price variance	$Answer
	F U
Sales volume variance	$Answer
	F U

Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.

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