Restco Beds Inc. produces two models of beds: Regular and Majestic. Budget and actual data were as follows:

 

Market Data

Expected total market sales of beds................................500,000 beds

Actual total market sales of beds....................................666,667 beds

Which of these is the sales price variance?

a. $437,500 unfavourable

b. $300,000 unfavourable

c. $ 50,000 unfavourable

d. $660,000 unfavourable

e. $ 69,000 favourable

Transcribed Image Text:

Budget Regular Majestic Regular Majestic Actual Regular Selling price per unit Sales volume in units Variable costs per unit $325 $800 $300 4,500 $700 4,800 5,500 7,200 $238 $590 $583 $220 Master Budget Actual Sales revenue $5,750,000 $5,700,000 Variable costs 4,235,000 4,512,000 Contribution 1,515,000 1,188,000 margin Fixed costs 882,500 919,500 Operating $ 632,500 $ 268,500 income