Question: Check my work Davidson Corp. produces a single product: fireproof safety deposit boxes for home use. The budget going into the current year anticipated a
Check my work 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 $65 per unit. Because of competitive pressures, the company had to cut selling prices by 10% during the year. Budgeted variable costs per unit are $42, and budgeted total fixed costs are $161,000 for the year. Anticipated sales volume for the year was 15,000 units. Actual sales volume was 5% less than budget. (1) What was the sales price variance for the year? (2) Label this variance F (favorable) or U (unfavorable), as appropriate. (Do not round intermediate calculations.) Sales price variance
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
