Fox Manufacturing At the beginning of the year, Fox Manufacturing had budgeted for the production and sale of 24,000 units. The standard sales price and variable costs per unit were budgeted to be $20.00 and $8.00, respectively. Actual sales for the year totaled 21,000 units, and the actual sales price and variable costs per unit were $19.50 and $8.00, respectively. Both budgeted and actual fixed costs were $20,000.
Refer to the Fox Manufacturing information above. What was Fox's sales price variance for the year?
A) $10,500 F
B) $10,500 U
C) $12,000 F
D) $12,000 U

Question

Quizplus · Accepted Answer

Sales price variance = (Actual sales price - Budgeted sales price) x Actual units sold
= ($19.50 - $20.00) x 21,000
= $10,500 U (Unfavorable because the actual sales price is lower than the budgeted sales price)

Fox Manufacturing at the Beginning of the Year, Fox Manufacturing