Nodefect Inc. manufactures family cars. Below is the static budget and actual results for last year. What is the total sales-volume variance for last year? Static budget Actual resultsUnits sold 650 700Sales price per unit $27,999 $28,999Variable manufacturing cost per unit $21,950 $22,850Contribution margin (in total) $3,931,850 $4,304,300Fixed manufacturing costs $2,805,000 $2,857,200Operating profit $1,126,850 $1,447,100
Question
Nodefect Inc. manufactures family cars. Below is the static budget and actual results for last year. What is the total sales-volume variance for last year? Static budget Actual resultsUnits sold 650 700Sales price per unit 28,999Variable manufacturing cost per unit 22,850Contribution margin (in total) 4,304,300Fixed manufacturing costs 2,857,200Operating profit 1,447,100
Solution
The sales volume variance is calculated by taking the difference between the actual quantity sold and the budgeted quantity, and multiplying it by the standard price per unit.
Here's how you calculate it:
-
Find the difference in quantity: Actual quantity sold - Budgeted quantity sold = 700 units - 650 units = 50 units
-
Multiply this difference by the standard price per unit: 50 units * 1,399,950
So, the total sales volume variance for last year is $1,399,950.
Similar Questions
NeksTech Ltd manufactures high tech laptops which are widely used by graphic designers. Below is the static budget and actual results for last year. What is the total sales-volume variance for last year? Static budget Actual resultsUnits sold 1,350 1,200Sales price per unit $2,399 $2,369Variable manufacturing cost per unit $1,750 $1,775Contribution margin (in total) $876,150 $712,800Fixed manufacturing costs $508,250 $489,950Operating profit $367,900 $222,850
Fill in the Blank QuestionFill in the blank question.Actual sales volume for a period is 5,000 units. Budgeted sales volume is 4,500. Actual selling price per unit is $15 and budgeted price per unit is $15.75. The sales price variance is $.
If actual sales revenue was $65 350 for the month, whereas budgeted sales revenue was $68 500, the sales variance is:Group of answer choicesnot able to be determined because cost of sales figures are not given.an unfavourable variance of $3150.a favourable variance of $3150.zero.
A company had a standard sales price of $1.79 per unit and expected to sell 10,000 units. Due to a downturn in the economy, the product was marked down to $1.59 per unit and the company only sold 9,500 units. Calculate the sales volume variance.Multiple choice question.$795 F$795 U$895 F$895 U
The fixed budget indicates sales of $50,000. Actual sales were $55,000. The variance is:
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.