Rockport Industries Inc. gathered the following data for March: Planned Actual Sales price per unit $150 $144 Number of units of sales × 12,500 × 12,900 Total sales $1,875,000 $1,857,600 Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. a. Compute the revenue price variance. $fill in the blank 1 b. Compute the revenue volume variance. $fill in the blank 3 c. Compute the total revenue variance. $fill in the blank 5
Rockport Industries Inc. gathered the following data for March: Planned Actual Sales price per unit $150 $144 Number of units of sales × 12,500 × 12,900 Total sales $1,875,000 $1,857,600 Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. a. Compute the revenue price variance. $fill in the blank 1 b. Compute the revenue volume variance. $fill in the blank 3 c. Compute the total revenue variance. $fill in the blank 5
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Revenue variances
Rockport Industries Inc. gathered the following data for March:
| Planned | Actual | |
| Sales price per unit | $150 | $144 |
| Number of units of sales | × 12,500 | × 12,900 |
| Total sales | $1,875,000 | $1,857,600 |
Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
a. Compute the revenue price variance.
| $fill in the blank 1 |
b. Compute the revenue volume variance.
| $fill in the blank 3 |
c. Compute the total revenue variance.
| $fill in the blank 5 |
Expert Solution
Step 1
Formula:
Revenue price variance = Actual units sold x ( Actual price - planned price )
Deduction of planned price from actual price which to be multiplied with actual units sold to derive the revenue price variance.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education