Rockport Industries Inc. gathered the following data for March: Planned Actual Sales price per unit $150 $144 Number of units of sales × 12,500 × 12,900 Total sales $1,875,000 $1,857,600 Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. a. Compute the revenue price variance. $fill in the blank 1 b. Compute the revenue volume variance. $fill in the blank 3 c. Compute the total revenue variance. $fill in the blank 5
Rockport Industries Inc. gathered the following data for March: Planned Actual Sales price per unit $150 $144 Number of units of sales × 12,500 × 12,900 Total sales $1,875,000 $1,857,600 Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. a. Compute the revenue price variance. $fill in the blank 1 b. Compute the revenue volume variance. $fill in the blank 3 c. Compute the total revenue variance. $fill in the blank 5
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter9: Evaluating Variances From Standard Costs
Section: Chapter Questions
Problem 22E
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Question
Revenue variances
Rockport Industries Inc. gathered the following data for March:
| Planned | Actual | |
| Sales price per unit | $150 | $144 |
| Number of units of sales | × 12,500 | × 12,900 |
| Total sales | $1,875,000 | $1,857,600 |
Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
a. Compute the revenue price variance.
| $fill in the blank 1 |
b. Compute the revenue volume variance.
| $fill in the blank 3 |
c. Compute the total revenue variance.
| $fill in the blank 5 |
Expert Solution
Step 1
Formula:
Revenue price variance = Actual units sold x ( Actual price - planned price )
Deduction of planned price from actual price which to be multiplied with actual units sold to derive the revenue price variance.
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