Sales Variances Presented is information pertaining to an item sold by Winding Creek General Store: Actual Budget 150 125 $26 $25 (20) $6 Unit sales Unit selling price Unit standard variable costs Unit contribution margin Revenues Variable costs $ $3,900 $3,125 (3,000) (2,500) Contribution margin at standard costs $ 900 $ 625 Compute the revenue, sales price, and the sales volume variances. Revenue variance Sales price variance $ LA (20) $5 4 Sales volume variance

Sales Variances Presented is information pertaining to an item sold by Winding Creek General Store: Actual Budget 150 125 $26 $25 (20) $6 Unit sales Unit selling price Unit standard variable costs Unit contribution margin Revenues Variable costs $ $3,900 $3,125 (3,000) (2,500) Contribution margin at standard costs $ 900 $ 625 Compute the revenue, sales price, and the sales volume variances. Revenue variance Sales price variance $ LA (20) $5 4 Sales volume variance

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Question

Sales Variances
Presented is information pertaining to an item sold by Winding Creek General Store:
Actual Budget
150
125
$26
$25
(20)
$6
Unit sales
Unit selling price
Unit standard variable costs
Unit contribution margin
Revenues
Variable costs
$
$3,900 $3,125
(3,000)
(2,500)
Contribution margin at standard costs $ 900 $ 625
Compute the revenue, sales price, and the sales volume variances.
Revenue variance
Sales price variance
$
LA
(20)
$5
4
Sales volume variance

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