Variance Analysis Variances are the difference between the budgeted values and actual values of the cost and revenue items and are analyzed for components of direct and indirect costs. In case of costs, the change is deemed unfavorable if the actual costs exceed the budgeted costs and the change is deemed favorable if the actual costs do not exceed the budgeted costs. In case of revenues, the change is deemed favorable if the actual revenues exceed the budgeted revenues and the change is deemed unfavorable if the actual revenues are less than the budgeted revenues. Examples of the Variance Analysis metrics include: Sales Price Variance − It is a measure of the sales revenues actually received as well as the units of goods actually sold against budgeted sales revenues and estimated goods that will be sold. A favorable variance indicates higher revenue as well as greater profitability and an unfavorable variance indicates reduced revenues and has an adverse impact on profitability. Sales Price Variance = Actual Quantity Sold x ( Budgeted Sales Price - Actual Sales Price) Sales Volume Variance − It is a measure of the sales quantities actually sold against budgeted estimated goods that will be sold. A favorable variance indicates higher revenue as well as greater profitability and an unfavorable variance indicates reduced revenues and has an adverse impact on profitability. Sales Volume Variance = Budgeted Selling Price x ( Budgeted Sales Quantity - Actual Sales Quantity ) To Determine: Sales Price Variance and Sales Volume Variance

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Answer 1

Question

Chapter 23, Problem 21QS

To determine

Introduction:

Variance Analysis

Variances are the difference between the budgeted values and actual values of the cost and revenue items and are analyzed for components of direct and indirect costs.

In case of costs, the change is deemed unfavorable if the actual costs exceed the budgeted costs and the change is deemed favorable if the actual costs do not exceed the budgeted costs.

In case of revenues, the change is deemed favorable if the actual revenues exceed the budgeted revenues and the change is deemed unfavorable if the actual revenues are less than the budgeted revenues. Examples of the Variance Analysis metrics include:

Sales Price Variance − It is a measure of the sales revenues actually received as well as the units of goods actually sold against budgeted sales revenues and estimated goods that will be sold.

A favorable variance indicates higher revenue as well as greater profitability and an unfavorable variance indicates reduced revenues and has an adverse impact on profitability.

Sales Price Variance = Actual Quantity Sold x ( Budgeted Sales Price - Actual Sales Price)

Sales Volume Variance − It is a measure of the sales quantities actually sold against budgeted estimated goods that will be sold.

A favorable variance indicates higher revenue as well as greater profitability and an unfavorable variance indicates reduced revenues and has an adverse impact on profitability.

Sales Volume Variance = Budgeted Selling Price x ( Budgeted Sales Quantity - Actual Sales Quantity )

To Determine:

Sales Price Variance and Sales Volume Variance

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Answer 2

Question

Chapter 23, Problem 21QS

To determine

Introduction:

Variance Analysis

Variances are the difference between the budgeted values and actual values of the cost and revenue items and are analyzed for components of direct and indirect costs.

In case of costs, the change is deemed unfavorable if the actual costs exceed the budgeted costs and the change is deemed favorable if the actual costs do not exceed the budgeted costs.

In case of revenues, the change is deemed favorable if the actual revenues exceed the budgeted revenues and the change is deemed unfavorable if the actual revenues are less than the budgeted revenues. Examples of the Variance Analysis metrics include:

Sales Price Variance − It is a measure of the sales revenues actually received as well as the units of goods actually sold against budgeted sales revenues and estimated goods that will be sold.

A favorable variance indicates higher revenue as well as greater profitability and an unfavorable variance indicates reduced revenues and has an adverse impact on profitability.

Sales Price Variance = Actual Quantity Sold x ( Budgeted Sales Price - Actual Sales Price)

Sales Volume Variance − It is a measure of the sales quantities actually sold against budgeted estimated goods that will be sold.

A favorable variance indicates higher revenue as well as greater profitability and an unfavorable variance indicates reduced revenues and has an adverse impact on profitability.

Sales Volume Variance = Budgeted Selling Price x ( Budgeted Sales Quantity - Actual Sales Quantity )

To Determine:

Sales Price Variance and Sales Volume Variance

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

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Answer 3

Question

Chapter 23, Problem 21QS

To determine

Introduction:

Variance Analysis

Variances are the difference between the budgeted values and actual values of the cost and revenue items and are analyzed for components of direct and indirect costs.

In case of costs, the change is deemed unfavorable if the actual costs exceed the budgeted costs and the change is deemed favorable if the actual costs do not exceed the budgeted costs.

In case of revenues, the change is deemed favorable if the actual revenues exceed the budgeted revenues and the change is deemed unfavorable if the actual revenues are less than the budgeted revenues. Examples of the Variance Analysis metrics include:

Sales Price Variance − It is a measure of the sales revenues actually received as well as the units of goods actually sold against budgeted sales revenues and estimated goods that will be sold.

A favorable variance indicates higher revenue as well as greater profitability and an unfavorable variance indicates reduced revenues and has an adverse impact on profitability.

Sales Price Variance = Actual Quantity Sold x ( Budgeted Sales Price - Actual Sales Price)

Sales Volume Variance − It is a measure of the sales quantities actually sold against budgeted estimated goods that will be sold.

A favorable variance indicates higher revenue as well as greater profitability and an unfavorable variance indicates reduced revenues and has an adverse impact on profitability.

Sales Volume Variance = Budgeted Selling Price x ( Budgeted Sales Quantity - Actual Sales Quantity )

To Determine:

Sales Price Variance and Sales Volume Variance

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 23, Problem 21QS

To determine

Introduction:

Variance Analysis

Variances are the difference between the budgeted values and actual values of the cost and revenue items and are analyzed for components of direct and indirect costs.

In case of costs, the change is deemed unfavorable if the actual costs exceed the budgeted costs and the change is deemed favorable if the actual costs do not exceed the budgeted costs.

In case of revenues, the change is deemed favorable if the actual revenues exceed the budgeted revenues and the change is deemed unfavorable if the actual revenues are less than the budgeted revenues. Examples of the Variance Analysis metrics include:

Sales Price Variance − It is a measure of the sales revenues actually received as well as the units of goods actually sold against budgeted sales revenues and estimated goods that will be sold.

A favorable variance indicates higher revenue as well as greater profitability and an unfavorable variance indicates reduced revenues and has an adverse impact on profitability.

Sales Price Variance = Actual Quantity Sold x ( Budgeted Sales Price - Actual Sales Price)

Sales Volume Variance − It is a measure of the sales quantities actually sold against budgeted estimated goods that will be sold.

A favorable variance indicates higher revenue as well as greater profitability and an unfavorable variance indicates reduced revenues and has an adverse impact on profitability.

Sales Volume Variance = Budgeted Selling Price x ( Budgeted Sales Quantity - Actual Sales Quantity )

To Determine:

Sales Price Variance and Sales Volume Variance

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 5

Chapter 23, Problem 21QS

To determine

Introduction:

Variance Analysis

Variances are the difference between the budgeted values and actual values of the cost and revenue items and are analyzed for components of direct and indirect costs.

In case of costs, the change is deemed unfavorable if the actual costs exceed the budgeted costs and the change is deemed favorable if the actual costs do not exceed the budgeted costs.

In case of revenues, the change is deemed favorable if the actual revenues exceed the budgeted revenues and the change is deemed unfavorable if the actual revenues are less than the budgeted revenues. Examples of the Variance Analysis metrics include:

Sales Price Variance − It is a measure of the sales revenues actually received as well as the units of goods actually sold against budgeted sales revenues and estimated goods that will be sold.

A favorable variance indicates higher revenue as well as greater profitability and an unfavorable variance indicates reduced revenues and has an adverse impact on profitability.

Sales Price Variance = Actual Quantity Sold x ( Budgeted Sales Price - Actual Sales Price)

Sales Volume Variance − It is a measure of the sales quantities actually sold against budgeted estimated goods that will be sold.

A favorable variance indicates higher revenue as well as greater profitability and an unfavorable variance indicates reduced revenues and has an adverse impact on profitability.

Sales Volume Variance = Budgeted Selling Price x ( Budgeted Sales Quantity - Actual Sales Quantity )

To Determine:

Sales Price Variance and Sales Volume Variance

Answer 6

Chapter 23, Problem 21QS

To determine

Introduction:

Variance Analysis

Variances are the difference between the budgeted values and actual values of the cost and revenue items and are analyzed for components of direct and indirect costs.

In case of costs, the change is deemed unfavorable if the actual costs exceed the budgeted costs and the change is deemed favorable if the actual costs do not exceed the budgeted costs.

In case of revenues, the change is deemed favorable if the actual revenues exceed the budgeted revenues and the change is deemed unfavorable if the actual revenues are less than the budgeted revenues. Examples of the Variance Analysis metrics include:

Sales Price Variance − It is a measure of the sales revenues actually received as well as the units of goods actually sold against budgeted sales revenues and estimated goods that will be sold.

A favorable variance indicates higher revenue as well as greater profitability and an unfavorable variance indicates reduced revenues and has an adverse impact on profitability.

Sales Price Variance = Actual Quantity Sold x ( Budgeted Sales Price - Actual Sales Price)

Sales Volume Variance − It is a measure of the sales quantities actually sold against budgeted estimated goods that will be sold.

A favorable variance indicates higher revenue as well as greater profitability and an unfavorable variance indicates reduced revenues and has an adverse impact on profitability.

Sales Volume Variance = Budgeted Selling Price x ( Budgeted Sales Quantity - Actual Sales Quantity )

To Determine:

Sales Price Variance and Sales Volume Variance

Answer 7

Chapter 23, Problem 21QS

To determine

Introduction:

Variance Analysis

Variances are the difference between the budgeted values and actual values of the cost and revenue items and are analyzed for components of direct and indirect costs.

In case of costs, the change is deemed unfavorable if the actual costs exceed the budgeted costs and the change is deemed favorable if the actual costs do not exceed the budgeted costs.

In case of revenues, the change is deemed favorable if the actual revenues exceed the budgeted revenues and the change is deemed unfavorable if the actual revenues are less than the budgeted revenues. Examples of the Variance Analysis metrics include:

Sales Price Variance − It is a measure of the sales revenues actually received as well as the units of goods actually sold against budgeted sales revenues and estimated goods that will be sold.

A favorable variance indicates higher revenue as well as greater profitability and an unfavorable variance indicates reduced revenues and has an adverse impact on profitability.

Sales Price Variance = Actual Quantity Sold x ( Budgeted Sales Price - Actual Sales Price)

Sales Volume Variance − It is a measure of the sales quantities actually sold against budgeted estimated goods that will be sold.

A favorable variance indicates higher revenue as well as greater profitability and an unfavorable variance indicates reduced revenues and has an adverse impact on profitability.

Sales Volume Variance = Budgeted Selling Price x ( Budgeted Sales Quantity - Actual Sales Quantity )

To Determine:

Sales Price Variance and Sales Volume Variance

Answer 8

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Answer 9

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Answer 10

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Answer 11

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

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