What is the cost price variance? * G

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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What is the cost price variance? *
Sample format: 111,111 F or 111,111 U
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 acđu al results of operations for the month
of June are as follo ws:
Budget
8,000 un its
P800,000
480,000
P320.000
Adual
9,600 un its
P1,056,000
556.800
P 499.200
Sales
Cost of goods sold
Gross profit
Management wants an explantation ofthe favorable gross profit variance ofP 179,200 (adu al gross
profit of P499,200 less budgeted gross profit of P320,000).
Transcribed Image Text:What is the cost price variance? * Sample format: 111,111 F or 111,111 U 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 acđu al results of operations for the month of June are as follo ws: Budget 8,000 un its P800,000 480,000 P320.000 Adual 9,600 un its P1,056,000 556.800 P 499.200 Sales Cost of goods sold Gross profit Management wants an explantation ofthe favorable gross profit variance ofP 179,200 (adu al gross profit of P499,200 less budgeted gross profit of P320,000).
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