Question 1: Sales price variance, sales volume variance, and fixed cost variance

	Budgeted	Actual
Price	$600	$650
Sales volume in units	50	45
Unit VC	$100	$220
Fixed costs	$200,000	$220,000

a) Without computations, characterize the following variances as favorable or unfavorable:
sales price variance F U

sales volume variance F U

fixed cost variance F U


b) Compute the following variances. Enter favorable variances as a positive number and unfavorable variances as a negative number. Do NOT enter F or U after the number.
sales price variance = $
sales volume variance = $
fixed cost variance = $

Answer rating: 100% (QA)

Variance Analysis a Characterizing the Variances Sales Price Variance Favorable U The actual selling ... View the full answer