4000 Favorable 2 points c Sales price variance Actual Revenue Flexible Budget

# 4000 favorable 2 points c sales price variance actual

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\$4,000 Favorable (2 points)c.Sales price variance = Actual Revenue – Flexible Budget Revenue\$38,100 - \$39,000 = \$900 Unfavorable. (2 points)Page 18of 19
ACC 312 Fundamentals of Managerial AccountingMidterm Exam 2 Fall 2010 November 9, 20105.Materials price and quantity variance a.Material price variance = (Actual price – Budgeted price) x Actual quantity(\$2.50 - \$2.55) x 650 = \$32.50 F (2 points)b.Quantity variance = (Actual quantity – Budgeted quantity) x Budgeted price(650 – 300 x 2) x \$2.55 = \$127.50 U (2 points)Labor price and quantity variance a.Labor price variance = (Actual price – Budgeted price) x Actual quantity(\$21 - \$20) x 500 = \$500 U (2 points)b.Labor Quantity variance = (Actual quantity – Budgeted quantity) x Budgeted price(500 – 300 x 1.5) x \$20 = \$1,000 U (2 points)Page 19of 19

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