Format: 11,111 U or 11,111 F1. Sales price variance2. Cost price variance3. Quantity variance4. Sales mix variance Pure Gold Company produces two products, Pure A and Pure B. they presented thefollowing data for the years ended December 31, 2007 and 2008 for analysis.20072008Net sales540,000564,300Cost of sales297,900344,250Gross margin242,100220,050Pure APure B2007200820072008Unit sold15,00018,75030,00027,000Selling price20.0018.008.008.40Unit cost12.0012.603.934.00

Variance is the difference between budgeted and actual. Variance can be favorable or unfavorable…

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ormat: 11,111 U or 11,111 F 1. Sales price variance 2. Cost price variance 3. Quantity variance 4. Sales mix varianc

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Question

Format: 11,111 U or 11,111 F

1. Sales price variance

2. Cost price variance

3. Quantity variance

4. Sales mix variance

Pure Gold Company produces two products, Pure A and Pure B. they presented the
following data for the years ended December 31, 2007 and 2008 for analysis.
2007
2008
Net sales
540,000
564,300
Cost of sales
297,900
344,250
Gross margin
242,100
220,050
Pure A
Pure B
2007
2008
2007
2008
Unit sold
15,000
18,750
30,000
27,000
Selling price
20.00
18.00
8.00
8.40
Unit cost
12.00
12.60
3.93
4.00

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Help question 26
At the beginning of the year, you estimated the following - Production - 75,000 units Raw Material - 270,000 pounds at a cost of $1,026,000 Direct Labor - 187,500 hours at a cost of $4,125,000 Variable Overhead - 135,000 machine hours at a cost of $567,000 Fixed Overhead - $900,000 At the end of year, the actual results were as follows - Production - 73,000 units Raw Material - 265,720 pounds purchased and used at a cost of $1,036,308 Direct Labor - 179,580 hours at a cost of $3,968,718 Variable Overhead - 133,590 machine hours at a cost of $558,406.20 Fixed Overhead - $891,000
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