Question: 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
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.
Step by Step Solution
3.38 Rating (164 Votes )
There are 3 Steps involved in it
Sales price variance actual sal... View full answer
Get step-by-step solutions from verified subject matter experts
Document Format (1 attachment)
249-B-M-L-O-M (1058).docx
120 KBs Word File
