National Co. produces and sells cellular phone blaster, a gadget which explodes when activated with a remote com mander. This is used by cell phone owners when their unit is snatched from them or is taken by thieves. The static master budget and the adual results of operations for the month of June are as follows: Budget 8,000 units P 800,000 480,000 P320,000 Adual 9,600 units P1,056,000 556,800 P499.200 Sales Cost of goods sold Gross profit Management wants an explantation of the favorable gross profit variance of P 179,200 (adual gross profit of P499,200 less bud geted gross profit of P320,000).
National Co. produces and sells cellular phone blaster, a gadget which explodes when activated with a remote com mander. This is used by cell phone owners when their unit is snatched from them or is taken by thieves. The static master budget and the adual results of operations for the month of June are as follows: Budget 8,000 units P 800,000 480,000 P320,000 Adual 9,600 units P1,056,000 556,800 P499.200 Sales Cost of goods sold Gross profit Management wants an explantation of the favorable gross profit variance of P 179,200 (adual gross profit of P499,200 less bud geted gross profit of P320,000).
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
What is the cost volume variance?
![National Co. produces and sells cellular phone blaster, a gadget which explodes when activated
with a remote commander. This is used by cell phone owners when their unit is snatched from them
or is taken by thieves. The static master budget and the adual results of operations for the month
of June are as follows:
Budget
8,000 units
P800,000
480,000
P320.000
Adual
9,600 units
Sales
Cost of goods sold
Gross profit
P1,056,000
556.800
P 499,200
Management wants an explantation ofthe favorable gross profit variance of P 179,200 (adual gross
profit of P499,200 less bud geted gross profit of P320,000).](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4018bc5b-16ab-467c-b7c9-d09c5e9dc54e%2F63c50e50-2654-4b7a-a2ae-aa886e74c7c0%2F2at6tq_processed.png&w=3840&q=75)
Transcribed Image Text:National Co. produces and sells cellular phone blaster, a gadget which explodes when activated
with a remote commander. This is used by cell phone owners when their unit is snatched from them
or is taken by thieves. The static master budget and the adual results of operations for the month
of June are as follows:
Budget
8,000 units
P800,000
480,000
P320.000
Adual
9,600 units
Sales
Cost of goods sold
Gross profit
P1,056,000
556.800
P 499,200
Management wants an explantation ofthe favorable gross profit variance of P 179,200 (adual gross
profit of P499,200 less bud geted gross profit of P320,000).
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