Knowee
Questions
Features
Study Tools

A company had a standard sales price of $1.79 per unit and expected to sell 10,000 units. Due to a downturn in the economy, the product was marked down to $1.59 per unit and the company only sold 9,500 units. Calculate the sales volume variance.Multiple choice question.$795 F$795 U$895 F$895 U

Question

A company had a standard sales price of 1.79perunitandexpectedtosell10,000units.Duetoadownturnintheeconomy,theproductwasmarkeddownto1.79 per unit and expected to sell 10,000 units. Due to a downturn in the economy, the product was marked down to 1.59 per unit and the company only sold 9,500 units. Calculate the sales volume variance.Multiple choice question.795F795 F795 U895F895 F895 U

🧐 Not the exact question you are looking for?Go ask a question

Solution

The sales volume variance is calculated as the difference between the actual units sold and the budgeted units sold, multiplied by the standard selling price per unit.

Here's how you calculate it:

Step 1: Find the difference between the actual units sold and the budgeted units sold. 10,000 units (budgeted) - 9,500 units (actual) = 500 units

Step 2: Multiply this difference by the standard selling price per unit. 500 units * 1.79/unit(standardprice)=1.79/unit (standard price) = 895

Because the actual sales volume is less than the budgeted sales volume, this is an unfavorable variance. So, the sales volume variance is $895 U.

This problem has been solved

Similar Questions

Multiple Choice QuestionA company had a standard sales price of $1.79 per unit and expected to sell 10,000 units. Due to a downturn in the economy, the product was marked down to $1.59 per unit and the company only sold 9,500 units. Calculate the sales price variance.Multiple choice question.$2,000 U$1,900 F$2,000 F$1,900 U

Fill in the Blank QuestionFill in the blank question.Actual sales volume for a period is 5,000 units. Budgeted sales volume is 4,500. Actual selling price per unit is $15 and budgeted price per unit is $15.75. The sales price variance is $.

Grogu Ltd. had a favourable sales price variance of $873 for 2022. The company had budgeted for sales of 8,000 units at a sales price of $4 each. Actual sales in 2022 totalled 10,000 units. What was the actual sales price per unit in 2022? (enter your answer to 2 decimal places)

Given the following information, calculate the materials price variance:Direct material purchased and used 30,000 kgCost of direct material $84,000Unfavourable direct materials usage variance $3,000Standard quantity of direct materials allowed for May production 29,000kg

A quantity variance is Blank______.Multiple choice question.based only on the standard quantity of inputscalculated using the actual price of the inputbased only on the actual quantity of inputscalculated using the standard price of the input

1/3

Upgrade your grade with Knowee

Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.