Determine the variance of the sales volume

Question

Question 1: Engle Manufacturing Company established the following information of prices and costs:

Sale Price	$50 por unidad
Variable cost of production	$32 por unidad
Fixed costs total of production	$100,000
Fixed costs total of sale and administrative	$40,000

Engle expects that to produce and to sell 15,000 units.  The production and the current sales elevated to 16,000 units. 

It required:

A) Determine the variance of the sales volume, include the variance by the sales and the variable costs of production.

B) To classify the variance  in Favorable (F) Or  Unfavorable (D).

a), (b)

	Static budget	Flexible budget	variance	Favorable or Unfavorable
Number of units
Sales
Variable costs of manufacture

Q2. Engle Manufacturing Company established the following information of prices and costs:

Sale Price	$50 por unidad
Variable cost of production	$32 por unidad
Fixed costs total of production	$100,000
Fixed costs total of sale and administrative	$40,000

Engle expects that to produce and to sell 15,000 units.  The production and the current sales elevated to 16,000 units.

It required:

A) Determine the variance of the sales volume, include the variance by the sales and the variable costs of production.

B) To classify the variance  in Favorable (F) Or  Unfavorable (D).

(a), (b)

	Static budget	Flexible budget	variance	Favorable or Unfavorable
Number of units
Sales
Variable costs of manufacture