ur sales manager to explain why budgeted revenues for your division are below expectations. The budget indicated $1,039,500 of revenues based on a sales volume of 1,485,000 units. Sales records indicate that 1,500,400 product units were actually sold, but revenues were only $1,020,272. Calculate the sales price variance, the sale volume variance, and the total revenue variance. Sales price variance $ Unfavorable Sales volume variance

Munoz Company has provided the following Year 2 data. Budget Sales Variable product costs Variable selling expense Other variable expenses Fixed product costs Fixed selling expense Other fixed expenses Interest expense Variances Sales Variable product costs Variable selling expense Other variable expenses Fixed product costs Fixed selling expense Other fixed expenses Interest expense Required $ 513,000 204,000 47,000 3,100 16,600 24,200 1,300 680 7,800 Unfavorable 4,800 Favorable 1,700 Unfavorable 1,500 Unfavorable 230 Favorable 390 Favorable 140 Unfavorable 110 Favorable Prepare a budgeted and actual Income statement for Internal use. MUNOZ COMPANY Internal Income Statement for Year 2 Sales Variable expenses: Product costs Selling expenses Other expenses Contribution margin Fixed expenses. Product costs Selling expenses Other expenses Operating income (loss) Interest expense Net income (loss) Budget Actual

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

Question 4- Variance Analysis Required: The owners can see that the company sold a different amount of units than budgeted. They have asked vou to determine the flexible budget amounts and calculate the variances when comparing the flexible budget to the actual results S marksl. Flexible Budget Report Variance (show Static Flexible or Budget Budget Actual as positive Unfavorable Amount Amount Results amount) (U) Sales in Linits 6,500 6,200 Sales $ 650,000 650,000 Variable Cost 260,000 275,500 Foed Cost 26,000 25,000 Jet Operating Income 364 000 349,500