Davidson Corp. produces a single product: fireproof safety deposit boxes for home use. The budget going into

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Davidson Corp. produces a single product: fireproof safety deposit boxes for home use. The budget going into the current year anticipated a selling price of $55 per unit. Because of competitive pressures, the company had to cut selling prices by 10 percent during the year. Budgeted variable costs per unit are $32, and budgeted total fixed costs are $156,000 for the year. Anticipated sales volume for the year was 10,000 units. Actual sales volume was 5 percent less than budget. What was the sales price variance for the year? Label this variance F (favorable) or U (unfavorable), as appropriate.

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Cost management a strategic approach

ISBN: 978-0073526942

5th edition

Authors: Edward J. Blocher, David E. Stout, Gary Cokins

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