The sales price factor shows a variance of: a) P150,000 unfavorable b) P150,000 favorable c) P84,000 unfavorable d) P84,000 favorable ParagraphStylesItems 16 through 19 are based on the following information: Asiatic Manufacturing Co., a multi-product company, hasthe following data available for gross profit analysis:PRODUCTSTotalP510,0002020P240,000210,00030,000P45,00033,7507,500SalesP225,000Cost of salesNo. of units423,75060,00022,500000 002021SalesCost of salesNo. of unitsP360,000270,00030,000P270,000225,00030,000P30,00024,0006,000P660,000519,00066,000 16. The sales price factorshows a variance of:O P150,000 unfavorableP150,000 favorableP84,000 unfavorableO P84,000 favorableO O O O

Answered: The sales price factor shows a variance…

The sales price factor shows a variance of: a) P150,000 unfavorable b) P150,000 favorable c) P84,000 unfavorable d) P84,000 favorable

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

The sales price factor shows a variance of:

a) P150,000 unfavorable

b) P150,000 favorable

c) P84,000 unfavorable

d) P84,000 favorable

Paragraph
Styles
Items 16 through 19 are based on the following information: Asiatic Manufacturing Co., a multi-product company, has
the following data available for gross profit analysis:
PRODUCTS
Total
P510,000
2020
P240,000
210,000
30,000
P45,000
33,750
7,500
Sales
P225,000
Cost of sales
No. of units
423,750
60,000
22,500
000 00
2021
Sales
Cost of sales
No. of units
P360,000
270,000
30,000
P270,000
225,000
30,000
P30,000
24,000
6,000
P660,000
519,000
66,000

16. The sales price factor
shows a variance of:
O P150,000 unfavorable
P150,000 favorable
P84,000 unfavorable
O P84,000 favorable
O O O O

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Highlight T Strikethrough Calculator A company sells two products and has calculated the following information relating to sales variances: Sales mix variance = $1,000 Sales price variance = $200F Sales volume variance = $1,400A There is no indication as to whether the sales mix variance is adverse or favourable but it was caused by a lower proportion of the more profitable item being sold. What is the sales quantity variance? $200 Adverse $400 Adverse $2,400 Adverse $400 Favourable
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56
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The sales price factor shows a variance of
In response to poor sales, the sales manager of TJG Ltd has changed the pricing strategy to try and improve revenues and profits. As a result, the operating statement at the end of the period shows the following: Sales price variance: £13,000 Adverse Sales volume variance: £14,000 Favourable Sales quantity variance: E5,000 Favourable Which of the explanations below fits these variances? O Costs will have decreased given volumes have reduced. O Customers chose a less profitable mix than the budget anticipated. A price reduction may have driven an overall increase in contribution. O Prices have increased as the price variance is adverse.
41
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