Use the information below to answer the following questions.
$\begin{array}{lll}&\text { Flexed Budget for April }&\text { Actual for April }\
\text { Output } &40,000 \text { units } & 40,000 \text { units }\
\text { Sales } & \$ 500,000 & \$ 400,000 \
\text { Raw materials } & \$ 100,000 & \$ 88,000 \
\text { Labour } & \$ 250000 & \$ 180,000 \
\text { Overheads } & \$ 325000 & \$ 375,000
\end{array}$
-Refer to the table above. The adverse (unfavourable)sales variance of $100 000 is best explained by:

Question

Use the information below to answer the following questions.
 $\begin{array}{lll}&\text { Flexed Budget for April }&\text { Actual for April }\
\text { Output } &40,000 \text { units } & 40,000 \text { units }\
\text { Sales } & \$ 500,000 & \$ 400,000 \
\text { Raw materials } & \$ 100,000 & \$ 88,000 \
\text { Labour } & \$ 250000 & \$ 180,000 \
\text { Overheads } & \$ 325000 & \$ 375,000
\end{array}$
-Refer to the table above. The adverse (unfavourable)sales variance of $100 000 is best explained by:

Quizplus · Accepted Answer

The adverse sales variance of $100,000 is due to the actual sales revenue being lower than the budgeted sales revenue, which is best explained by a decrease in the price of the units sold, assuming the quantity sold remained the same.

Use the Information Below to Answer the Following Questions -Refer to the Table Above