Page 117 - BA2 Integrated Workbook - Student 2017
P. 117
Standard costing and variance analysis
2.5 Sales variances
Sales
price variance
Sales
total variance
Sales volume
contribution variance
From our XYZ example, we can add some additional data:
Standard selling price was $650 per unit.
Actual sales revenue was $1,350,000
Sales price variance
The sales price variance reveals the difference in total revenue caused by charging a
different selling price from standard.
$
2,100 units should sell for (× $650) 1,365,000
But did sell for 1,350,000
——––—–
Sales price variance $15,000 adverse
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