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What is the cost volume variance? * Sample format: 111,111 F or 111,111 U

What is the cost volume variance? * Sample format: 111,111 F or 111,111 U

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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What is the cost volume 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 com mander. 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 adu al results of operations for the month of June are as follows: Budget 8,000 units P800,000 480,000 P320.000 Adual Sales Cost of goods sold Gross profit 9,600 un its P1,056,000 556.800 P499.200 Management wants an expla ntation ofthe favorable gross profit variance of P179,200 (acual gross profit of P499,200 less budgeted gross profit of P320,000).
Transcribed Image Text:What is the cost volume 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 com mander. 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 adu al results of operations for the month of June are as follows: Budget 8,000 units P800,000 480,000 P320.000 Adual Sales Cost of goods sold Gross profit 9,600 un its P1,056,000 556.800 P499.200 Management wants an expla ntation ofthe favorable gross profit variance of P179,200 (acual gross profit of P499,200 less budgeted gross profit of P320,000).
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