Actual and budgeted information about the sales of a product are presented below for June: (CIA adapted)
$$\begin{array} { l c c }
& \text { Actual } & \text { Budget } \
\text { Units } & \mathbf { 8 , 0 0 0 } & 10,000 \
\text { Sales Reverue } & \mathbf { 9 2 , 0 0 0 } & \mathbf { \$ 1 0 5 , 0 0 0 }
\end{array}$$
The sales price variance for June was:
A) $8,000 favorable.
B) $8,000 unfavorable.
C) $10,000 unfavorable.
D) $10,500 unfavorable.

Question

Actual and budgeted information about the sales of a product are presented below for June: (CIA adapted)
$$\begin{array} { l c c } 
& \text { Actual } & \text { Budget } \
\text { Units } & \mathbf { 8 , 0 0 0 } & 10,000 \
\text { Sales Reverue } & \mathbf { 9 2 , 0 0 0 } & \mathbf { \$ 1 0 5 , 0 0 0 }
\end{array}$$
The sales price variance for June was:
A) $8,000 favorable.
B) $8,000 unfavorable.
C) $10,000 unfavorable.
D) $10,500 unfavorable.

Quizplus · Accepted Answer

Sales price variance = (Actual units * Actual price) - (Actual units * Budget price)= (8,000 * 92,000/8,000) - (8,000 * 105,000/8,000)= 92,000 - 105,000= $8,000 unfavorable

Actual and Budgeted Information About the Sales of a Product