Compute the amount of the favorable price variance
Using the information in the table below, calculate the amount of the favorable price variance.
Budgeted Actual Volume Cost per unit Cost
200,000 $40 $8,000,000
190,000 $37 $7,030,000
Now Priced at $5 (50% Discount)
Recommended (90%)
Rated (4.3/5)
Kelin bought a trademark from Royce for $300,000. An independent research company estimated that the remaining useful life of the trademark was ten years. The carrying value on Royce's books was $240,000.
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