Question 1.(total profit variance, sales price and sales quantity variance) XYZ Company's budgeted and actual results for last year are as follows:
Master budget
Actual results
Price
$500
$650
Sales volume (units)
8,000
6,000
Unit VC
$100
$100
Fixed costs
$250,000
$250,000
Required: (a) Compute budgeted and actual revenue, costs and profits:
Master budget
Actual
Sales volume (units)
Revenue
Variable costs
Contribution margin
Fixed costs
Profit
In (b)-(d) below, enter favorable and unfavorable variances as positive and negative numbers, without F or U. (b) How much is the total profit variance? (enter negative numbers with a minus, i.e. enter negative $100 as -100 not ($100) ) $ 13 (c) How much is the sales volume variance? (enter negative numbers with a minus) $ 14 (d) How much is the sales price variance? (enter negative numbers with a minus) $ 15
Answer & Explanation
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