Pinnacle Manufacturing produces premium outdoor grills. For the current fiscal year, the company budgeted a selling price of $420 per unit. Due to increased material costs, the company had to raise selling prices by 8% during the year. The budgeted variable costs per unit are $250, and total fixed costs are budgeted at $840,000 for the year. The anticipated sales volume for the year was 8,000 units. Actual sales volume was 7% less than budgeted. Calculate the sales price variance for the year.

Pinnacle Manufacturing produces premium outdoor grills. For the current fiscal year, the company budgeted a selling price of $420 per unit. Due to increased material costs, the company had to raise selling prices by 8% during the year. The budgeted variable costs per unit are $250, and total fixed costs are budgeted at $840,000 for the year. The anticipated sales volume for the year was 8,000 units. Actual sales volume was 7% less than budgeted. Calculate the sales price variance for the year.

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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