# Question 1 Sales price variance, sales volume variance, and fixed co.docx

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Question 1: Sales price variance, sales volume variance, and fixed cost variance Budgeted Actual \$500 Sales volume in units 70 65 Unit VC \$100 \$220 Fixed costs \$100,000 \$120,000 a) Without computations, characterize the followingvariances as favorable or unfavorable: sales price variance F U sales volume variance F U xed cost variance OFU b) Compute the following variances. Enter favorable variances as a positive number and unfavorable variances as a negative number. Do NOT enter For U after the number sales price variances sales volume variances fixed cost variance \$ Question 2: Input price and input efficiency variances The budgeted and actual data for direct materials and labor are as follows Budgeted Actual DM price \$2 per pound \$1.75 per pound DM quantity per unit Spounds per unit 6 pounds per unit DL price \$8 per hour \$11 per hour DL quantity per unit 0.3 hours per unit 0.4 hours per unit Actual sales volume is 100 units. Budgeted sales volume is 80 units. a) Without