Folsom Fashions sells a line of women's dresses.The company uses flexible budgets to analyze its performances.The firm's performance report for November is presented below:
The selling price variance for November is:

Question

Folsom Fashions sells a line of women's dresses.The company uses flexible budgets to analyze its performances.The firm's performance report for November is presented below: 
The selling price variance for November is:

Quizplus · Accepted Answer

The selling price variance is calculated as Actual Units Sold x (Actual Selling Price - Standard Selling Price).

From the performance report, we can see that actual units sold in November were 3,000, which is the same as the budgeted amount. The standard selling price per dress is $400.

The actual selling price per dress is calculated as follows: 
Actual Sales Revenue / Actual Units Sold = $1,500,000 / 3,000 = $500

Therefore, the selling price variance is: 
3,000 x ($500 - $400) = $300,000 unfavorable

Thus, the correct answer is A) $15,000 unfavorable.

Folsom Fashions Sells a Line of Women's Dresses