Question

Atlas Company builds swimming pools. Atlas budgets that they will sell 14 pools during the month of April at a price of $20517 per pool. Actual pools sold by Atlas during April were 12 pools at a price of $21771 per pool. What is the Master Budget Variance for April? If the variance is unfavorable, use a negative sign right before the number with no space in between.

Answer 1

Answer:

Master Budget Variance = -$25,986 Unfavorable

Explanation:

Master Budget Variance = Standard or Budgeted Sales Value - Actual Sales Value

Budgeted Sales Value = 14 pools for $20,517 per pool = $287,238

Actual Sales Value = 12 pools for $21,771 per pool = $261,252

Master Budget Variance = $287,238 - $261,252 = $25,986

Since actual sales value is less than budgeted sales, the variance is unfavorable.

Master Budget Variance = -$25,986 Unfavorable