Coppelli Inc. In early 2012, Coppelli Inc. had budgeted for the production and sale of 24,000 units. The standard sales price and variable costs per unit were budgeted to be $6.00 and $2.00, respectively. Actual sales for 2012 totaled 25,300 units, and the actual sales price and variable costs per unit were $6.50 and $2.10, respectively. Both budgeted and actual fixed costs were $30,000.
Refer to the Coppelli Inc. information above. What was Coppelli's sales price variance for 2012?
A) $12,650 F
B) $12,650 U
C) $12,000 F
D) $12,000 U

Question

Quizplus · Accepted Answer

The sales price variance is calculated as the difference between the actual sales price and the budgeted sales price, multiplied by the actual quantity sold. Here, it is ($6.50 - $6.00) * 25,300 = $0.50 * 25,300 = $12,650 favorable, because the actual sales price was higher than the budgeted sales price.