# ch8 problems.docx - When will the sales volume variance be...

• justjoshMBA
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When will the sales volume variance be unfavorable?
When will the sales price variance be unfavorable?
Is it possible to have an unfavorable sales volume variance and an unfavorable sales price variance?
Why might a favorable sales volume variance lead to an unfavorable fixed cost spending variance? How does your answer reconcile with the fixed cost/ variable cost classification of
22, 27, 30, 38, 44, 49, 56, 50 ________ 8.30 MASTER FLEXIBLE ACTUAL SALES 4000 4500 4500 PRICE PER CUPCAKE 2.50 2.50 2.40 REVENUE 4000*2.50=10000 4500*2.50=11250 4500*2.40=10800 VARIABLE COST 4000*1 4500 4500*1=4500 CMR 6000 6750 6300 FC 2000 2000 2000 PROFIT 4000 4750 4300 A: 300 FAVORABLE TOTAL PROFIT VARIANCE B: 4750-4000=750F C: 4300-4750=450U _______
Calculating and interpreting materials price and quantity variances (LO2, LO3). Juhee and Michael Williamson own J&M Burgers, an Austin, TX eatery that is famous for its whopping 1- pound hamburger made with fresh ground beef and cooked to order. Together with a side of “all