Concept Introduction:
Standard Costing system allows estimating the costs, preparing budgets for future periods, and analyzing the performance by comparing the budgets with actual results and find variances.
Variances:
A Variance is a difference between actual and standard figures. There are two main types of Variances as follows:
- Price variance: Price variance shows the difference between standard price and actual price.
- Quantity variance: Quantity variance shows the difference between standard quantity and actual quantity.
Requirement-1:
To Calculate:
Sales Price variance
Concept Introduction:
Standard Costing System:
Standard Costing system allows estimating the costs, preparing budgets for future periods, and analyzing the performance by comparing the budgets with actual results and find variances.
Variances:
A Variance is a difference between actual and standard figures. There are two main types of Variances as follows:
- Price variance: Price variance shows the difference between standard price and actual price.
- Quantity variance: Quantity variance shows the difference between standard quantity and actual quantity.
Requirement-2:
To Calculate:
Sales Volume variance

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Chapter 23 Solutions
FUNDAMENTAL ACCT.PRIN.-CONNECT ACCESS
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