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STatiana [176]
3 years ago
12

The master budget at Western Company last period called for sales of 225,000 units at $9 each. The costs were estimated to be $3

.75 variable per unit and $225,000 fixed. During the period, actual production and actual sales were 230,000 units. The selling price was $9.10 per unit. Variable costs were $4.50 per unit. Actual fixed costs were $225,000. Required: Prepare a sales activity variance analysis
Business
1 answer:
Vadim26 [7]3 years ago
6 0

Answer:

Sales volume variance $26,250 Favorable

Explanation:

<em>The sales volume variance is calculated as the difference between the budgeted and the actual sales volume multiplied by he standard contribution per unit</em>

                                                                       Units

Budgeted sales units                                 225,000

Actual sales units                                      <u> 230,000</u>

Sales volume                                              5,000 favorable

Standard contribution(9-3.75)              <u>     × $5.25</u>

Sales volume variance                        <u>    $ 26,250 </u>

Sales volume variance                        $26,250 Favorable

<em>Note standard contribution = standard selling price - standard variable cost</em>

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3 years ago
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Answer:

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3 years ago
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