Sales Price Variance: Sales price variance is the difference between the budgeted selling price per unit and actual selling price per unit. Since sale price is revenue factor, if the actual selling price is more than the expected selling price, the variance is considered as favorable and if the actual selling price is less than the expected selling price, the variance is considered as unfavorable. Sales Quantity Variance: The sales variance which is caused by difference between the standard quantity and actual quantity is called a sales quantity variance. The favorability of sales quantity variance depends on whether the variance is increasing the sales revenue or decreasing it. If the actual quantity is more than the budgeted quantity, the variance is increasing the sales revenue. Thereby the variance is considered as favorable and vice-versa. To determine : 1. Computation of sales price variance and sales volume variance 2. Interpretation

Question

Want to see the full answer?

Answer 1

Question

Chapter 23, Problem 23E

To determine

Sales Price Variance:

Sales price variance is the difference between the budgeted selling price per unit and actual selling price per unit. Since sale price is revenue factor, if the actual selling price is more than the expected selling price, the variance is considered as favorable and if the actual selling price is less than the expected selling price, the variance is considered as unfavorable.

Sales Quantity Variance:

The sales variance which is caused by difference between the standard quantity and actual quantity is called a sales quantity variance. The favorability of sales quantity variance depends on whether the variance is increasing the sales revenue or decreasing it. If the actual quantity is more than the budgeted quantity, the variance is increasing the sales revenue. Thereby the variance is considered as favorable and vice-versa.

To determine:

1. Computation of sales price variance and sales volume variance

2. Interpretation

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Kindly help me with accounting questions

Quick answer of this accounting questions

A company has net income of $268,000 and total assets of $2,576,000. What is the ROA? Sub: Accounting

Answer 2

Question

Chapter 23, Problem 23E

To determine

Sales Price Variance:

Sales price variance is the difference between the budgeted selling price per unit and actual selling price per unit. Since sale price is revenue factor, if the actual selling price is more than the expected selling price, the variance is considered as favorable and if the actual selling price is less than the expected selling price, the variance is considered as unfavorable.

Sales Quantity Variance:

The sales variance which is caused by difference between the standard quantity and actual quantity is called a sales quantity variance. The favorability of sales quantity variance depends on whether the variance is increasing the sales revenue or decreasing it. If the actual quantity is more than the budgeted quantity, the variance is increasing the sales revenue. Thereby the variance is considered as favorable and vice-versa.

To determine:

1. Computation of sales price variance and sales volume variance

2. Interpretation

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 23, Problem 23E

To determine

Sales Price Variance:

Sales price variance is the difference between the budgeted selling price per unit and actual selling price per unit. Since sale price is revenue factor, if the actual selling price is more than the expected selling price, the variance is considered as favorable and if the actual selling price is less than the expected selling price, the variance is considered as unfavorable.

Sales Quantity Variance:

The sales variance which is caused by difference between the standard quantity and actual quantity is called a sales quantity variance. The favorability of sales quantity variance depends on whether the variance is increasing the sales revenue or decreasing it. If the actual quantity is more than the budgeted quantity, the variance is increasing the sales revenue. Thereby the variance is considered as favorable and vice-versa.

To determine:

1. Computation of sales price variance and sales volume variance

2. Interpretation

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 23, Problem 23E

To determine

Sales Price Variance:

Sales price variance is the difference between the budgeted selling price per unit and actual selling price per unit. Since sale price is revenue factor, if the actual selling price is more than the expected selling price, the variance is considered as favorable and if the actual selling price is less than the expected selling price, the variance is considered as unfavorable.

Sales Quantity Variance:

The sales variance which is caused by difference between the standard quantity and actual quantity is called a sales quantity variance. The favorability of sales quantity variance depends on whether the variance is increasing the sales revenue or decreasing it. If the actual quantity is more than the budgeted quantity, the variance is increasing the sales revenue. Thereby the variance is considered as favorable and vice-versa.

To determine:

1. Computation of sales price variance and sales volume variance

2. Interpretation

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 23, Problem 23E

To determine

Sales Price Variance:

Sales price variance is the difference between the budgeted selling price per unit and actual selling price per unit. Since sale price is revenue factor, if the actual selling price is more than the expected selling price, the variance is considered as favorable and if the actual selling price is less than the expected selling price, the variance is considered as unfavorable.

Sales Quantity Variance:

The sales variance which is caused by difference between the standard quantity and actual quantity is called a sales quantity variance. The favorability of sales quantity variance depends on whether the variance is increasing the sales revenue or decreasing it. If the actual quantity is more than the budgeted quantity, the variance is increasing the sales revenue. Thereby the variance is considered as favorable and vice-versa.

To determine:

1. Computation of sales price variance and sales volume variance

2. Interpretation

Answer 6

Chapter 23, Problem 23E

To determine

Sales Price Variance:

Sales price variance is the difference between the budgeted selling price per unit and actual selling price per unit. Since sale price is revenue factor, if the actual selling price is more than the expected selling price, the variance is considered as favorable and if the actual selling price is less than the expected selling price, the variance is considered as unfavorable.

Sales Quantity Variance:

The sales variance which is caused by difference between the standard quantity and actual quantity is called a sales quantity variance. The favorability of sales quantity variance depends on whether the variance is increasing the sales revenue or decreasing it. If the actual quantity is more than the budgeted quantity, the variance is increasing the sales revenue. Thereby the variance is considered as favorable and vice-versa.

To determine:

1. Computation of sales price variance and sales volume variance

2. Interpretation

Answer 7

Chapter 23, Problem 23E

To determine

Sales Price Variance:

Sales price variance is the difference between the budgeted selling price per unit and actual selling price per unit. Since sale price is revenue factor, if the actual selling price is more than the expected selling price, the variance is considered as favorable and if the actual selling price is less than the expected selling price, the variance is considered as unfavorable.

Sales Quantity Variance:

The sales variance which is caused by difference between the standard quantity and actual quantity is called a sales quantity variance. The favorability of sales quantity variance depends on whether the variance is increasing the sales revenue or decreasing it. If the actual quantity is more than the budgeted quantity, the variance is increasing the sales revenue. Thereby the variance is considered as favorable and vice-versa.

To determine:

1. Computation of sales price variance and sales volume variance

2. Interpretation

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. 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

Videos

Want to see the full answer?

Chapter 23 Solutions