Cost Management: A Strategic Emphasis 7th Edition by Edward Blocher,David Stout ,Paul Juras,Gary Cokins

تمرين 48

Davidson Corp. produces a single product: fireproof safety deposit boxes for home use. The budget going into the current year anticipated a selling price of $55 per unit. Because of competitive pressures, the company had to cut selling prices by 10% during the year. Budgeted variable costs per unit are $32, and budgeted total fixed costs are $156,000 for the year. Anticipated sales volume for the year was 10,000 units. Actual sales volume was 5% less than budget. What was the sales price variance for the year Label this variance F (favorable) or U (unfavorable), as appropriate.