Nap Co.has two products named X and Y.The firm had the following master budget for the year just completed:
The following operating results were reported after the year was over:
The selling price variance for Product X is:
A)$0.
B)$20,000 unfavorable.
C)$25,000 unfavorable.
D)$30,000 favorable.
E)$40,000 unfavorable.

Question

Nap Co.has two products named X and Y.The firm had the following master budget for the year just completed: 
The following operating results were reported after the year was over: 
The selling price variance for Product X is:
A)$0. 
B)$20,000 unfavorable. 
C)$25,000 unfavorable. 
D)$30,000 favorable. 
E)$40,000 unfavorable.

Quizplus · Accepted Answer

The selling price variance for Product X can be calculated as follows:

Actual Selling Price - Budgeted Selling Price = Selling Price Variance
($90 - $100) x 20,000 units = $25,000 unfavorable

Therefore, the best choice is C, as it represents the actual selling price variance for Product X.

Nap CoHas Two Products Named X and Y