Question

Actual sales volume for a period is 5,000 units. Budgeted sales volume is 4,500. Actual selling price per unit is $15 an budgeted price per unit is $15.75. The sales price variance is___________.

Answer 1

-$3750 unfavorable

Step-by-step explanation:

Given that

Actual Sales volume = 5,000 units

Budgeted sales volume = 4,500

Actual selling price per unit = $15

Planned selling price = $15.75

So, the computation of the sales price variance is given below:-

= Actual quantity sold × (actual selling price - planned selling price)

= 5,000 × ($15 - $15.75)

= 5,000 × (-$0.75)

= -$3750 unfavorable