Question

Claremont company specializes in selling refurbished copiers. during the month, the company sold 210 copiers for total sales of $756,000. the budget for the month was to sell 205 copiers at an average price of $3,800. the sales price variance for the month was:

Answer 1

The sales price variance is computed by :
 (actual sales price-standard/budgeted sales price) x actual units sold

In this case, the actual price is $3600 and the standard price is $3800 and the actual unit sold is 210 copiers

Therefore :

($3600-$3800)x210=$42000 unfavorable sales price variance because you can sell the copier at a higher price of 3800 than the actual price of 3600