Problem:
A company uses Standard Costing System. The sales data for a period are as follows:
|
Product
|
Budgeted Sales
(units)
|
Budgeted Selling
Price per unit (Rs.)
|
Annual Sales
(units)
|
Actual Sales Value
(Rs.)
|
|
A
|
1,280
|
20
|
650
|
12,350
|
|
B
|
3,200
|
12
|
3,900
|
50,700
|
|
C
|
1,920
|
6
|
1,950
|
29,250
|
The cost data are as follows:
|
A Rs.
|
B Rs.
|
C Rs.
|
|
Standard Cost per unit
|
16
|
10
|
13
|
|
Actual Cost per unit
|
18
|
12
|
13
|
You are required to calculate the following for the period:
(a) Gross margin total sales variance; (b) Gross margin sales volume variance; (c) Gross margin sales mix variance; (d) Gross margin sales quantity variance; (e) Sales price variance; (f) Total cost variance.