The following data pertain to Auxiliary Backup Computers for the month of April. Static BudgetActualUnits sold 10,000 9,000 Sales revenue$120,000 $103,500 Variable manufacturing cost40,000 36,000 Fixed manufacturing cost 20,000 20,000 Variable selling and administrative cost10,000 9,000 Fixed selling and administrative cost10,000 10,000 Required:Compute the sales-price and sales-volume variances for April.
What will be an ideal response?
| Sales-price variance = (actual sales price - budgeted sales price) × | actual sales volume |
| ($11.50* - $12.00†) × 9,000 = $4,500 Unfavorable |
| Sales-volume variance = (actual sales volume - budgeted sales volume) × | budgeted sales price |
| = (9,000 - 10,000) × $12.00 = $12,000 Unfavorable |
| ? |
†$12.00 = $120,000 ÷ 10,000
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