A machine distributor sells two models,basic and deluxe.The following information relates to its master budget.Actual sales were 7,000 basic models and 2,800 deluxe models.The actual sales prices were the same as the budgeted sales prices for both models. $$\begin{array} { | l | r | r | }
\hline & \text { Basic } & \text { Deluse } \
\hline \text { Sales (units) } & 8,000 & 2,000 \
\hline \text { Sales price per unit } & \$ 8,000 & \$ 12,000 \
\hline \text { Variable costs per unit } & \$ 6,400 & \$ 9,000 \
\hline
\end{array}$$What is the sales quantity variance for the deluxe model?
A) $120,000.
B) $256,000.
C) $1,344,000.
D) $1,600,000.

Question

A machine distributor sells two models,basic and deluxe.The following information relates to its master budget.Actual sales were 7,000 basic models and 2,800 deluxe models.The actual sales prices were the same as the budgeted sales prices for both models. $$\begin{array} { | l | r | r | } 
\hline & \text { Basic } & \text { Deluse } \
\hline \text { Sales (units) } & 8,000 & 2,000 \
\hline \text { Sales price per unit } & \$ 8,000 & \$ 12,000 \
\hline \text { Variable costs per unit } & \$ 6,400 & \$ 9,000 \
\hline
\end{array}$$What is the sales quantity variance for the deluxe model?
A) $120,000.
B) $256,000.
C) $1,344,000.
D) $1,600,000.

Quizplus · Accepted Answer

The sales quantity variance is calculated as the difference between the actual sales quantity and the budgeted sales quantity, multiplied by the budgeted sales price per unit. For the deluxe model, the sales quantity variance is (2,800 - 2,000) * $12,000 = $120,000.

A Machine Distributor Sells Two Models,basic and Deluxe What Is the Sales Quantity Variance for the Deluxe Model