Cost Price Variance E.) Cost Volume Variance F.) Total Gross Profit Variance G.) Price Variance H.) Price-Quantity Variance I.) Cost Variance J.) Cost-Quantity Variance
Cost Price Variance E.) Cost Volume Variance F.) Total Gross Profit Variance G.) Price Variance H.) Price-Quantity Variance I.) Cost Variance J.) Cost-Quantity Variance
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter5: The Income Statement And The Statement Of Cash Flows
Section: Chapter Questions
Problem 2MC: The following information is available for Cooke Company for the current year: The gross margin is...
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Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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D.) Cost Price Variance
E.) Cost Volume Variance
F.) Total Gross Profit Variance
G.) Price Variance
H.) Price-Quantity Variance
I.) Cost Variance
J.) Cost-Quantity Variance

Transcribed Image Text:The Income Statement of ZZZ Company for the years ended December 31, 2020 and 2021
showed the following data.
2020
2021
Net Sales
Cost of Sales
Gross Margin
Operating Expenses
800,000
480,000
924,000
501.600
422,400
320,000
180,000
140,000
220,000
Net Income
202,400
Additional Data:
Units Sold
Unit Selling Price
Unit Cost
80,000
10.00
88,000
10.50
6.00
5.70
Analyze if Favorable or Unfavorable,
A.) Sales Price Variance =44,000 F
B.) Sales Volume Variance = 80,000 F
C.) Sales Variance =124,000 F
D.) Cost Price Variance
E.) Cost Volume Variance
F.) Total Gross Profit Variance
G.) Price Variance
H.) Price-Quantity Variance
L) Cošt Variance
J.) Cost-Quantity Variance
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