Question

a company sells two products: radios and speakers. the expected sales for radios were 1,500 units; 2,000 were sold. the budgeted selling price for radios was $106.00; however, the actual selling price was $119.00. the expected sales for speakers were 4,600 units; 5,000 were sold. the budgeted selling price for speakers was $83.00; however, the actual selling price was $87.00. budgeted and actual variable costs were $48.00 per unit for the radios and $32.00 per unit for the speakers. what is the total sales quantity variance for the period?

Answer 1

To calculate the total sales quantity variance for the period, the quantity variance for radios and speakers are computed separately and then summed. It amounts to $53,000 for radios and $33,200 for speakers, leading to a total quantity variance of $86,200 Favorable.

Step-by-step explanation:

The total sales quantity variance for the period can be calculated by considering both the radios and the speakers. We calculate it by determining the difference between the actual quantity sold and the expected quantity sold, and then multiplying by the budgeted selling price.

Radios:

• Expected sales: 1,500 units
• Actual sales: 2,000 units
• Budgeted selling price: $106.00

Quantity variance for radios = (Actual sales - Expected sales) x Budgeted selling price = (2,000 - 1,500) x $106.00 = $53,000 Favorable.

Speakers:

• Expected sales: 4,600 units
• Actual sales: 5,000 units
• Budgeted selling price: $83.00

Quantity variance for speakers = (Actual sales - Expected sales) x Budgeted selling price = (5,000 - 4,600) x $83.00 = $33,200 Favorable

The total sales quantity variance is the sum of the radios and speakers quantity variances: $53,000 (Radios) + $33,200 (Speakers) = $86,200 Favorable.