Comp Wiz sells computers. During May, it sold 300 computers at a $800 average price each. The May fixed budget included sales of 350 computers at an average price of $770 each. AQ = Actual Quantity SQ Standard Quantity AP Actual Price SP Standard Price 1&2. Compute the sales price variance and the sales volume variance for May. Classify it as favorable or unfavorable. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance.) Flexible Budget Actual Sales Budgeted Sales AQ АP AQ SP SQ SP X X Y 0 0 0

Comp Wiz sells computers. During May, it sold 300 computers at a $800 average price each. The May fixed budget included sales of 350 computers at an average price of $770 each. AQ = Actual Quantity SQ Standard Quantity AP Actual Price SP Standard Price 1&2. Compute the sales price variance and the sales volume variance for May. Classify it as favorable or unfavorable. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance.) Flexible Budget Actual Sales Budgeted Sales AQ АP AQ SP SQ SP X X Y 0 0 0

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter18: Pricing And Profitability Analysis

Section: Chapter Questions

Problem 5CE: Saginaw Company is a garden products wholesale firm. In December, Saginaw Company expects to sell...

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Saginaw Company is a garden products wholesale firm. In December, Saginaw Company expects to sell 30,000 bags of vegetable fertilizer at an average price of 5.30 per bag. Actual results are 30,600 bags sold at an average price of 5.20 per bag. Required: 1. Calculate the sales price variance for December. 2. Calculate the sales volume variance for December. 3. Calculate the overall sales variance for December. Explain why it is favorable or unfavorable. 4. What if December sales were actually 29,800 bags? How would that affect the sales price variance? The sales volume variance? The overall sales variance?
Lowell Manufacturing Inc. has a normal selling price of 20 per unit and has been selling 125,000 units per month. In November, Lowell Manufacturing decided to lower its price to 19 per unit expecting it can increase the units sold by 16%. a. Compute the normal revenue with a 20 selling price. b. Compute the planned revenue with a 19 selling price. c. Compute the actual revenue for November, assuming 135,000 units were sold in November at 19 per unit. d. Compute the revenue price variance, assuming 135,000 units were sold in November at 19 per unit. e. Compute the revenue volume variance, assuming 135,000 units were sold in November at 19 per unit. f. Analyze and interpret the lowering of the price to 19.
Mia Wiz sells computers. During May, it sold 400 computers at a $1,100 per unit price. The fixed budget for May predicted sales of 450 computers at an per unit price of $1,080. AQ Actual Quantity SQ Standard Quantity AP Actual Price SP- Standard Price 1&2. Compute the sales price variance and the sales volume variance for May. Identify it as favorable or unfavorable. Note: Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. Actual Sales Flexible Budget 0 0 S 0 Budgeted Sales
Mia Wiz sells computers. During May, it sold 300 computers at a $800 per unit price. The fixed budget for May predicted sales of 350 computers at an per unit price of $780. AQ = Actual Quantity SQ = Standard Quantity AP = Actual Price SP = Standard Price 1&2. Compute the sales price variance and the sales volume variance for May. Identify it as favorable or unfavorable. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.) Actual Sales $ Flexible Budget 0 0 $ 0 Budgeted Sales
Mia Wiz sells computers. During May, it sold 500 computers at a $800 per unit price. The fixed budget for May predicted sales of 550 computers at an per unit price of $780. AQ = Actual QuantitySQ = Standard QuantityAP = Actual PriceSP = Standard Price 1&2. Compute the sales price variance and the sales volume variance for May. Identify it as favorable or unfavorable. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.)
Mia Wiz sells computers. During May, it sold 400 computers at a $900 per unit price. The fixed budget for May predicted sales of 450 computers at an per unit price of $850. AQ = Actual Quantity SQ = Standard Quantity AP = Actual Price SP = Standard Price 1&2. Compute the sales price variance and the sales volume variance for May. Identify it as favorable or unfavorable. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.) Actual Sales Flexible Budget Budgeted Sales $ $ Sales price variance Sales volume variance %24
Comp Wiz sells computers. During May, it sold 350 computers at a $1,200 average price each. The May fixed budget included sales of 365 computers at an average price of $1,100 each. 1. Compute the sales price variance and classify it as favorable or unfavorable. 2. Compute the sales volume variance and classify it as favorable or unfavorable.
PLEASE ANSWER THE FOLLOWING QUESTIONS: Requirements 1. Compute the total sales-volume variance, the total sales-mix variance, and the total sales-quantity variance. (Calculate all variances in terms of contribution margin.) Show results for each product in your computations. 2. What inferences can you draw from the variances computed in requirement 1? Data table Budget for 2020 Selling Variable Cost Cartons Product Price per Carton Sold Kostor $11.00 $ Limba $ 23.00 $ 6.40 16.15 Actual for 2020 Selling Variable Cost Cartons Price per Carton Sold 7.40 138,600 16.35 59,400 132,000 $11.60 S 88,000 $ 24.40 $
Campbell Industries has gathered the following information about the actual sales revenues and expenses for its pharmaceuticals segment for the most recent year. E (Click the icon to view the actual data.) Prepare a segment margin performance report for the pharmaceutical segment. Calculate a variance and a variance percentage for each line in the report. Round to the nearest hundredth for the variance percentages (for example, if your answer is 16.2384%, round it to 16.24%). Budgeted data for the same time period for the pharmaceutical segment are as follows (all data are in millions): E (Click the icon to view the budgeted data.) Begin by preparing the performance report through the contribution margin line. Next, complete the report through the segment margin line, and then, finally, complete the report through the operating income line. (Enter the variances as positive numbers. Round the variance percentages to the nearest hundredth percent, X.XX%.) Performance Report Data table…
Farad, Inc., specializes in selling used trucks. During the month, Farad sold 52 trucks at an average price of $9,400 each. The budget for the month was to sell 47 trucks at an average price of $9,800 each.AQ = Actual QuantitySQ = Standard QuantityAP = Actual PriceSP = Standard PriceCompute the dealership’s sales price variance and sales volume variance for the month and classify each as favorable or unfavorable.
Woodruff Flowering Plants provides the following information for the month of May: Actual Sales in units Contribution margin per unit For May, Woodruff will report a(n) OA. favorable sales - mix variance B. favorable market share variance OC. unfavorable market share variance D. unfavorable sales - mix variance Fuchsia 21,000 $22 Dogwood 4.500 $19 C Fuchsia Budget 18,000 $23 Dogwood 3,200 $18
Archoid's Flowering Plants provides the following information for the month of May: Actual Sales in units Contribution margin per unit For May, the company will report a(n). A. unfavorable sales - mix variance B. unfavorable market-share variance C. favorable market-share variance D. favorable sales-mix variance Tulips 4,420 $15 Geraniums Tulips Budget 4,200 $19 (Round any intermediary calculations two decimal places.) 4,950 $10 Geraniums 3,300 $22