2. Davidson Corporation produces a single product: fireproof safety deposit boxes for home use. The budget going into th
Posted: Tue Nov 16, 2021 9:33 am
2. Davidson Corporation produces a single product: fireproof
safety deposit boxes for home use. The budget going into the
current year anticipated a selling price of $66 per unit. Because
of competitive pressures, the company had to cut selling prices by
5% during the year. Budgeted variable costs per unit are $43, and
budgeted total fixed costs are $161,500 for the year.
Anticipated sales volume for the year was 15,500 units. Actual
sales volume was 10% less than budget. (1) What was the sales price
variance for the year? (2) Label this variance F (favorable) or U
(unfavorable), as appropriate. (Do not round
intermediate calculations.)
safety deposit boxes for home use. The budget going into the
current year anticipated a selling price of $66 per unit. Because
of competitive pressures, the company had to cut selling prices by
5% during the year. Budgeted variable costs per unit are $43, and
budgeted total fixed costs are $161,500 for the year.
Anticipated sales volume for the year was 15,500 units. Actual
sales volume was 10% less than budget. (1) What was the sales price
variance for the year? (2) Label this variance F (favorable) or U
(unfavorable), as appropriate. (Do not round
intermediate calculations.)