Nonmanufacturing variances.Ralph's Sales uses standard costs and variances for controlling costs.As a result of studying past cost data,it has established standards as follows: variable costs,$6 per sales call;nine sales calls per unit sold.Actual data for May,June,and July follow:

Required:
Compute the variable cost price and efficiency variances for each month.

Question

Nonmanufacturing variances.Ralph's Sales uses standard costs and variances for controlling costs.As a result of studying past cost data,it has established standards as follows: variable costs,$6 per sales call;nine sales calls per unit sold.Actual data for May,June,and July follow:
  
Required:
Compute the variable cost price and efficiency variances for each month.

Quizplus · Accepted Answer

The Answer of Nonmanufacturing variances.Ralph's Sales uses standard costs and variances for controlling costs.As a result of studying past cost data,it has established standards as follows: variable costs,$6 per sales call;nine sales calls per unit sold.Actual data for May,June,and July follow:
  
Required:
Compute the variable cost price and efficiency variances for each month.

Nonmanufacturing Variances