Question

Clark Company's master budget reflects budgeted sales information for the month of June, 2019, as follows: Budgeted Quantity Budgeted Unit Sales Price Product A 40,000 $7 Product B 48,000 $9 During June, the company actually sold 39,000 units of Product A at an average unit price of $7.10 and 49,600 units of Product B at an average unit price of $8.90. Prepare a Sales Budget Report for the month of June for Clark Company which shows whether the company achieved its planned objectives.

Answer 1

Total sales variance $87,340 Favorable

See report below

Step-by-step explanation:

The sales budget for the month of June would like as follows:

Budgeted Sales

Product units Price Total($)

A 40,000 $7 280,000

B 39,000 $9 351,000

Actual sales

Product units Price Total($)

A 39,000 $7.10 276,900

B 49,600 $8.90 441440

Sales Budget Report for the month of June 2019

Budget Actual Variance ($)

A 280,000 276,900 3,100 Unfavorable

B 351,000 441,440 90,440 favorable

Total sales variance 87,340 Favorable