Davidson corp produces a single product fireproof safety


Question - Davidson Corp. produces a single product: fireproof safety deposit boxes for home use. The budget going into the current year anticipated a selling price of $61 per unit. Because of competitive pressures, the company had to cut selling prices by 10% during the year. Budgeted variable costs per unit are $38, and budgeted total fixed costs are $159,000 for the year. Anticipated sales volume for the year was 13,000 units. Actual sales volume was 5% less than budget. What was the sales price variance for the year? Label this variance F (favorable) or U (unfavorable), as appropriate.

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Accounting Basics: Davidson corp produces a single product fireproof safety
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