Question 1: Sales price variance, sales volume variance, and fixed cost variance Price Sales volume in units Unit VC Fixed costs Budgeted $500 80 Actual $550 75 Submit Answer $100 $220 $400,000 $420,000 a) Without computations, characterize the following variances as favorable or unfavorable: sales price variance OF OU sales volume variance OF U fixed cost variance OF OU b) Compute the following variances. Enter favorable variances as a positive number and unfavorable variances as a negative num number. sales price variance = $ 3750 sales volume variance = $ 2500 fixed cost variance $20000 Do NOT enter Fi U after the

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Question 1: Sales price variance, sales volume variance, and fixed cost variance
Price
Sales volume in units
Unit VC
Fixed costs
Budgeted
$500
80
Actual
$550
75
Submit Answer
$100
$220
$400,000 $420,000
a) Without computations, characterize the following variances as favorable or unfavorable:
sales price variance F Ou
sales volume variance OF U
fixed cost variance OF U
b) Compute the following varia ces. Enter favorable variances as a positive number and unfavorable
number.
sales price variance = $ 3750
sales volume variance $ 2500
fixed cost variance = $-20000
nces as a negative nut
Do NOT enter F U after the
Transcribed Image Text:Question 1: Sales price variance, sales volume variance, and fixed cost variance Price Sales volume in units Unit VC Fixed costs Budgeted $500 80 Actual $550 75 Submit Answer $100 $220 $400,000 $420,000 a) Without computations, characterize the following variances as favorable or unfavorable: sales price variance F Ou sales volume variance OF U fixed cost variance OF U b) Compute the following varia ces. Enter favorable variances as a positive number and unfavorable number. sales price variance = $ 3750 sales volume variance $ 2500 fixed cost variance = $-20000 nces as a negative nut Do NOT enter F U after the
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