Planned sales are 10,000 units at $7.00 per unit. Actual sales are 11,000 units at $6.50 per unit. Which of the following statements is not true? a. The revenue volume variance is favorable. b. The total revenue variance is unfavorable. c. The revenue volume variance is $7,000. d. The revenue price variance is unfa
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Planned sales are 10,000 units at $7.00 per unit. Actual sales are 11,000 units at $6.50 per unit. Which of the following statements is not true?
a. The revenue volume variance is favorable.b. The total revenue variance is unfavorable.c. The revenue volume variance is $7,000.d. The revenue price variance is unfavorable.
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- Which of the following analysis of variances is true? a. Unfavorable sales volume variance means that the actual quantity of units sold is less than the amount of sales at standard quantity. b. A unfavorable sales price variance under the 3-way analysis has a same interpretation with that of the favorable sales price variance under the 4-way analysis. c. A cost price variance that is favorable shows that the current year cost of sales per unit is greater than the prior year cost of sales. d. A favorable volume variance means that the number of units sold as per budget exceed the actual number of units sold.S1: The percentage increase in selling price is found by dividing the favorable sales price variance by last year's sales at the current year's sales quantity. S2: The percentage decrease in units sold is found by dividing the favorable cost volume variance by the planned level of cost of sales. A. both are true C. S1 is true D. S2 is true B. both are falseThe sales price factor shows a variance of: a) P150,000 unfavorable b) P150,000 favorable c) P84,000 unfavorable d) P84,000 favorable
- Indicate whether each statement is true or false.1.a) DM quantity variance is favorable when the actual price is lower than the standardprice/pound. (……….)1.b) DL rate variance is unfavorable when the actual rate per hour was greater than thestandard rate per hour. (……….)Assume that sales quantity variance is $26,560 unfavourable, market share variance is $74,700 unfavourable. Which of the following statements is TRUE? A) Actual market size is lower than budgeted market size. B) Actual market size is higher than budgeted market size. C) Actual market share is higher than budgeted market share. D) None of these answers is correct.Which of the following statements is NOT true about a sales mix variance? O If actual sales revenues from two products are in the same ratio as the budgeted sales revenues there is no measurable sales mix variance O If actual sales volumes are in the same ratio as the budgeted sales volumes there is no measurable sales mix variance O If the actual sales volumes of all products are 10% above the budgeted sales volumes, there is no measurable sales mix variance O If all products have the same budgeted margin there is no measurable sales mix variance
- Can you help me interpret these results i)Revenue Variance, Price, and Volume Variance Revenue variance = Actual revenues – Static revenues = $2,200,000 - $1,9800,000 = $220,000 Price variance = Actual revenues – Flexible revenues =$2,2000,000 - $2,200,000 =$0 Volume variance = Flexible revenues – Static revenues =$2,200,000 - $1,980,000 = $220,000 ii) Cost Variance, Volume Variance and Management Variance Cost variance = Static cost - Actual cost =$1,350,000 -$1,625,000 = $-275,000 Volume = Static cost – Flexible costs = $1,350,000 - =$1,475,000 = $-125,000 Management variance = Flexible cost- Actual cost =$2,200,000 - 1,625,000 =$575,000 iii) Profit Variance Profit Variance= Actual Profit - Static Profit = 225,000 - 130,000 = 95,000 Revenue Variance = Actual Revenue - Static Revenue = 2, 200,000 - 1,980,000 = 220,000 Cost Variance = Static Cost - Actual Costs = 1,850,000 - 1,975,000 = (125,000) Can you help me interpret these resultsDetermine the flexible budget variance if the sales volume variance is $134,000 F and static - budget variance is $123,000 F. Indicate whether the variance is favourable or unfavourable. Do not enter dollar signs or commas in the input boxes. Enter the variance amount as a positive value.Which of the following about gross profit variance analysis is most correct? a. Results of the gross variance analysis should be published at least annually to improve the company’s transparency. b. All of the choices are correct. c. Gross profit variance analysis is a management tool used to track gross profit and improve its performance and profitability in the future. d. A zero-gross profit variance absolutely indicates that the company is able to sell its products at the same price and at the same volume as budgeted or as previous year’s.
- Springwater Brewery has two main products: premium and regular ale. Its operating results and master budget for 20XX (000s omitted) follow: Barrels Sales Variable expenses Contribution margin Fixed expenses Operating income Operating Results of 20XX Regular 630 $ 78,750 53,550 $ 25,200 8,000 $ 17,200 Premium 210 $ 35,700 18,900 $ 16,800 12,000 $ 4,800 Total 840 $ 114,450 72,450 $ 42,000 20,000 $ 22,000 Master Budget for 20XX Regular 390 $ 50,700 33,150 $ 17,550 8,000 $ 9,550 Premium 260 $ 41,600 23,400 $ 18,200 12,000 $ 6,200 Required: Calculate the following: 1. Selling price variances for the period for each product and for the firm. 2. Sales volume variances for the period for each product and for the firm. Total 650 $ 92,300 56,550 $ 35,750 20,000 $ 15,750 Pam Kuder, CEO, expected the total industry sales to be 1,300,000 barrels during the period. After the year, Mark Goldfeder, the controller, reported that the total sales for the industry were 1,400,000 barrels. 3. Sales quantity…Compute for the following and indicate if its FAVORABLE or UNFAVORABLE. Format: 11,111 F or 11,111 U Sales price variance = Sales volume variance= Sales variance=5. Compute the quantity variance based on the data on the image. * 2019 P 520 P 500 2018 Sale Price Cost per Unit 360 330 Units Sold 13,000 13,500 6. Assuming that the sales price increased by 5%, what is the cost price variance? * 2020 P 6,235,500 P 6,000,000 5,000,000 2021 Sales Cost of Sales 5,049,000 7. How much is the sales price- volume variance? * Gross Profit Last Year Gross Profit This Year P 861,250 900,000 Change in units sold last year Units Sold 650 50 Change in sales price Change in cost price P 100 75 Excerpt from the four-way analysis: Sales Quantity Variance - Unfavorable P 245,000 Cost Price Variance - Favorable Cost Quantity Variance - Favorable 45,000 178,750
