Question

Actual sales volume for a period is 5,000 units. budgeted sales volume is 4,500. actual selling price per unit is $15 and budgeted price per unit is $15. 75. the sales price variance is $__________.

Answer 1

Actual sales volume for a period is $5,000$ units. budgeted sales volume is $4,500$. actual selling price per unit is $$15$ and budget price per unit is $$15. 75$. the sales price variance is $$3,750$

Sales Price Variance:

The term "sales price variation" describes the discrepancy between a company's anticipated price for a good or service and the amount that was actually paid for it.

Reduced competition, higher sales price realization, general inflation, a sudden rise in product demand, etc. are a few potential reasons for a favorable sales price variance.

Sales Price Variance = (Actual Sale Price – Standard Sale Price) × Actual Quantity Sold.

Calculation of the Sales Price Variance :-

Sales Price Variance = ( Actual price $-$ Budgeted price)× Actual quantity

Sales Price Variance = $( 15 - 15.75) * 5,000$

Sales Price Variance = $$3,750$ Unfavorable.

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