Problem:
Western Company's budgeted and actual sales for 2009 were as follows.
Product
|
Budgeted Sales
|
Actual Sales
|
A
|
10,250 units at $16.00 per unit
|
12,130 units at $15.60 per unit
|
B
|
15,560 units at $12.00 per unit
|
12,940 units at $12.40 per unit
|
Required:
Question 1: Calculate the sales volume variance.
Question 2: Calculate the sales price variance.
Question 3: Calculate the total sales variance.
Note: Be sure to show how you arrived at your answer.