Question: Saginaw Company is a garden products wholesale firm In December

Saginaw Company is a garden products wholesale firm. In December, Saginaw Company expects to sell 30,000 bags of vegetable fertilizer at an average price of $5.30 per bag. Actual results are 30,600 bags sold at an average price of $5.20 per bag.
Required:
1. Calculate the sales price variance for December.
2. Calculate the sales volume variance for December.
3. Calculate the overall sales variance for December. Explain why it is favorable or unfavorable.
4. What if December sales were actually 29,800 bags? How would that affect the sales price variance? The sales volume variance? The overall sales variance?

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  • CreatedSeptember 01, 2015
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