Sales variance is the difference between the budgeted sales and the actual sales. Sales variance can be because of two reasons Actual selling price of the product varies from the budgeted selling price and/or Actual quantity of sales varies from the budgeted quantity. Therefore, sales variance is the sum of (i) Sales Price Variance and (ii) Sales Volume Variance. Sales Price Variance: The difference between the actual selling price and the budgeted selling price is the Sales Price Variance. Sales Volume Variance: The difference between actual quantity of sales and budgeted quantity is the Sales Volume Variance. The following formulas are used to calculate Sales variance: Sales Variance= Sales Price Variance+ Sales Volume Variance Also Sales Variance = Budgeted Sales − Actual Sales Sales Price Variance = Actual Sales - Actual quantity of Sales at budgeted price Sales Volume Variance = Actual quantity at budgeted price -Budgeted quantity at budgeted price Sales variance gives a view of deviations from the set standards which can be wither favorable or unfavorable Sales Price and Volume Variance

Question

Want to see the full answer?

Answer 1

Question

Chapter 23, Problem 21QS

To determine

Concept Introduction:

Sales variance is the difference between the budgeted sales and the actual sales. Sales variance can be because of two reasons

Actual selling price of the product varies from the budgeted selling price and/or

Actual quantity of sales varies from the budgeted quantity.

Therefore, sales variance is the sum of (i) Sales Price Variance and (ii) Sales Volume Variance.

Sales Price Variance:

The difference between the actual selling price and the budgeted selling price is the Sales Price Variance.

Sales Volume Variance:

The difference between actual quantity of sales and budgeted quantity is the Sales Volume Variance.

The following formulas are used to calculate Sales variance:

Sales Variance= Sales Price Variance+ Sales Volume Variance

Also Sales Variance = Budgeted Sales − Actual Sales

Sales Price Variance = Actual Sales - Actual quantity of Sales at budgeted price

Sales Volume Variance = Actual quantity at budgeted price -Budgeted quantity at budgeted price

Sales variance gives a view of deviations from the set standards which can be wither favorable or unfavorable

Sales Price and Volume Variance

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Presented below is financial information for two different companies

Subject: financial accounting

What would be the effect on income from operations

Answer 2

Question

Chapter 23, Problem 21QS

To determine

Concept Introduction:

Sales variance is the difference between the budgeted sales and the actual sales. Sales variance can be because of two reasons

Actual selling price of the product varies from the budgeted selling price and/or

Actual quantity of sales varies from the budgeted quantity.

Therefore, sales variance is the sum of (i) Sales Price Variance and (ii) Sales Volume Variance.

Sales Price Variance:

The difference between the actual selling price and the budgeted selling price is the Sales Price Variance.

Sales Volume Variance:

The difference between actual quantity of sales and budgeted quantity is the Sales Volume Variance.

The following formulas are used to calculate Sales variance:

Sales Variance= Sales Price Variance+ Sales Volume Variance

Also Sales Variance = Budgeted Sales − Actual Sales

Sales Price Variance = Actual Sales - Actual quantity of Sales at budgeted price

Sales Volume Variance = Actual quantity at budgeted price -Budgeted quantity at budgeted price

Sales variance gives a view of deviations from the set standards which can be wither favorable or unfavorable

Sales Price and Volume Variance

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 23, Problem 21QS

To determine

Concept Introduction:

Sales variance is the difference between the budgeted sales and the actual sales. Sales variance can be because of two reasons

Actual selling price of the product varies from the budgeted selling price and/or

Actual quantity of sales varies from the budgeted quantity.

Therefore, sales variance is the sum of (i) Sales Price Variance and (ii) Sales Volume Variance.

Sales Price Variance:

The difference between the actual selling price and the budgeted selling price is the Sales Price Variance.

Sales Volume Variance:

The difference between actual quantity of sales and budgeted quantity is the Sales Volume Variance.

The following formulas are used to calculate Sales variance:

Sales Variance= Sales Price Variance+ Sales Volume Variance

Also Sales Variance = Budgeted Sales − Actual Sales

Sales Price Variance = Actual Sales - Actual quantity of Sales at budgeted price

Sales Volume Variance = Actual quantity at budgeted price -Budgeted quantity at budgeted price

Sales variance gives a view of deviations from the set standards which can be wither favorable or unfavorable

Sales Price and Volume Variance

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 23, Problem 21QS

To determine

Concept Introduction:

Sales variance is the difference between the budgeted sales and the actual sales. Sales variance can be because of two reasons

Actual selling price of the product varies from the budgeted selling price and/or

Actual quantity of sales varies from the budgeted quantity.

Therefore, sales variance is the sum of (i) Sales Price Variance and (ii) Sales Volume Variance.

Sales Price Variance:

The difference between the actual selling price and the budgeted selling price is the Sales Price Variance.

Sales Volume Variance:

The difference between actual quantity of sales and budgeted quantity is the Sales Volume Variance.

The following formulas are used to calculate Sales variance:

Sales Variance= Sales Price Variance+ Sales Volume Variance

Also Sales Variance = Budgeted Sales − Actual Sales

Sales Price Variance = Actual Sales - Actual quantity of Sales at budgeted price

Sales Volume Variance = Actual quantity at budgeted price -Budgeted quantity at budgeted price

Sales variance gives a view of deviations from the set standards which can be wither favorable or unfavorable

Sales Price and Volume Variance

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 23, Problem 21QS

To determine

Concept Introduction:

Sales variance is the difference between the budgeted sales and the actual sales. Sales variance can be because of two reasons

Actual selling price of the product varies from the budgeted selling price and/or

Actual quantity of sales varies from the budgeted quantity.

Therefore, sales variance is the sum of (i) Sales Price Variance and (ii) Sales Volume Variance.

Sales Price Variance:

The difference between the actual selling price and the budgeted selling price is the Sales Price Variance.

Sales Volume Variance:

The difference between actual quantity of sales and budgeted quantity is the Sales Volume Variance.

The following formulas are used to calculate Sales variance:

Sales Variance= Sales Price Variance+ Sales Volume Variance

Also Sales Variance = Budgeted Sales − Actual Sales

Sales Price Variance = Actual Sales - Actual quantity of Sales at budgeted price

Sales Volume Variance = Actual quantity at budgeted price -Budgeted quantity at budgeted price

Sales variance gives a view of deviations from the set standards which can be wither favorable or unfavorable

Sales Price and Volume Variance

Answer 6

Chapter 23, Problem 21QS

To determine

Concept Introduction:

Sales variance is the difference between the budgeted sales and the actual sales. Sales variance can be because of two reasons

Actual selling price of the product varies from the budgeted selling price and/or

Actual quantity of sales varies from the budgeted quantity.

Therefore, sales variance is the sum of (i) Sales Price Variance and (ii) Sales Volume Variance.

Sales Price Variance:

The difference between the actual selling price and the budgeted selling price is the Sales Price Variance.

Sales Volume Variance:

The difference between actual quantity of sales and budgeted quantity is the Sales Volume Variance.

The following formulas are used to calculate Sales variance:

Sales Variance= Sales Price Variance+ Sales Volume Variance

Also Sales Variance = Budgeted Sales − Actual Sales

Sales Price Variance = Actual Sales - Actual quantity of Sales at budgeted price

Sales Volume Variance = Actual quantity at budgeted price -Budgeted quantity at budgeted price

Sales variance gives a view of deviations from the set standards which can be wither favorable or unfavorable

Sales Price and Volume Variance

Answer 7

Chapter 23, Problem 21QS

To determine

Concept Introduction:

Sales variance is the difference between the budgeted sales and the actual sales. Sales variance can be because of two reasons

Actual selling price of the product varies from the budgeted selling price and/or

Actual quantity of sales varies from the budgeted quantity.

Therefore, sales variance is the sum of (i) Sales Price Variance and (ii) Sales Volume Variance.

Sales Price Variance:

The difference between the actual selling price and the budgeted selling price is the Sales Price Variance.

Sales Volume Variance:

The difference between actual quantity of sales and budgeted quantity is the Sales Volume Variance.

The following formulas are used to calculate Sales variance:

Sales Variance= Sales Price Variance+ Sales Volume Variance

Also Sales Variance = Budgeted Sales − Actual Sales

Sales Price Variance = Actual Sales - Actual quantity of Sales at budgeted price

Sales Volume Variance = Actual quantity at budgeted price -Budgeted quantity at budgeted price

Sales variance gives a view of deviations from the set standards which can be wither favorable or unfavorable

Sales Price and Volume Variance

Answer 8

Expert Solution & Answer

Answer 9

Expert Solution & Answer

Answer 10

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 11

Ch. 23 - Prob. 1QS Ch. 23 - Prob. 2QS Ch. 23 - Prob. 3QS Ch. 23 - Prob. 4QS Ch. 23 - Prob. 5QS Ch. 23 - Prob. 6QS Ch. 23 - Prob. 7QS Ch. 23 - Prob. 8QS Ch. 23 - Prob. 9QS Ch. 23 - Prob. 10QS

Concept explainers

Videos

Want to see the full answer?

Chapter 23 Solutions