Page 134 - BA2 Integrated Workbook STUDENT 2018
P. 134
Chapter 7
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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