Franklin Company's expected sales were 2,000 units at $100 per unit. During 2014, 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 (Actual Selling Price - Budgeted Selling Price) x Actual Units Sold. Here, it is ($110 - $100) x 1,800 = $18,000 favorable (F).

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