Smith Wholesale budgeted sales price is $40 per unit for an budgeted sales volume of 5,000 units. The actual performance was 5,5
1 answer:
Answer:
$20,000 Favorable
Explanation:
As for the provided information, we have:
Sales Volume Variance is defined as the variance arising due to difference in sales quantity based on standard price.
Formula for the above = (Actual Sales - Budgeted Sales) Standard Price
= (5,500 - 5,000) $40
= $20,000
This variance shall be categorized as favorable, as the actual sales quantity is more than the static budgeted quantity.
Therefore, Sales Volume Variance = $20,000 Favorable
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Answer:
I could not find the exact details related to this question so here is a similar question to guide you.
Goodwill = Acquisition Price - Net book value (Investee)
= 75,000 - ( Assets - Liabilities)
= 75,000 - ( 90,000 - 40,000)
= $25,000
Identifiable noncurrent assets is overstated by $10,000 however. This will have to be adjusted for tax and then removed from Goodwill to find the Net goodwill that should be reported in the investor's consolidated balance sheet prepared immediately after this business combination.
= 10,000 ( 1 - 40%)
= $6,000
Net Goodwill = 25,000 - 6,000
<h2>= $19,000</h2>