Franklin Company's expected sales were 2,000 units at $100 per unit.During 2011, 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 Price - Budgeted Price) x Actual Quantity Sold. 
In this case, the actual price is $110 and the budgeted price is $100. 
So, the sales price variance is (110-100) x 1,800 = $18,000 (F).

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