Mia Wiz sells computers. During May, it sold 600 computers at a $1,000 per unit price. The fixed budget for May predicted sales of 650 computers at an per unit price of $970.

AQ = Actual Quantity SQ = Standard Quantity AP = Actual Price SP = Standard Price

REQUIRED 1. Compute the sales price variance and the sales volume variance for May. Identify it as favorable or unfavorable. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.)

Actual Sales			0	Flexible Budget			0	Budgeted Sales
AQ	x	AP		AQ	x	SP		SQ	x	SP
	x				x				x
			$0	0			$0
Sales price variance				0
Sales volume variance				0
Total sales variance