Franklin Company's expected sales were 2,000 units at $100 per unit. During 2018, it had actual sales of 1,800 units at $110 per unit. Budgeted variable costs were $60 per unit. What is Franklin's sales price variance?

Question

Quizplus · Accepted Answer

The sales price variance is calculated as the difference between the actual price and the budgeted price, multiplied by the actual quantity sold. Here, it's (110 - 100) * 1,800 = $18,000 Favorable, because the actual price is higher than the budgeted price.

Franklin Company's Expected Sales Were 2,000 Units at $100 Per