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 Y is:
A)$0.
B)$25,000 unfavorable.
C)$24,000 favorable.
D)$30,000 favorable.
E)$30,000 unfavorable. Actual price: $384,000/2,500 = $64 ($64-$60)x 6000 = $24,000 favorable

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 Y is:
A)$0. 
B)$25,000 unfavorable. 
C)$24,000 favorable. 
D)$30,000 favorable. 
E)$30,000 unfavorable. Actual price: $384,000/2,500 = $64 ($64-$60)x 6000 = $24,000 favorable

Quizplus · Accepted Answer

To calculate the selling price variance for Product Y, we need to compare the actual selling price of Y with the budgeted selling price of Y. The actual selling price of Y is given as $64, while the budgeted selling price of Y is $60.

Therefore, the selling price variance for Y is:

($64 - $60) x 6,000 units = $24,000 favorable

So, the correct answer is Choice C.

Nap CoHas Two Products Named X and Y