Question

Last month Z Co budgeted to sell 8,000 units at a price of $$\$ 12.50$$ per unit. Actual sales last month were 9,000 units giving a total sales revenue of $$\$ 117,000$$. What was the sales price variance for last month? - $$\$ 4,000$$ Favourable - $$\$ 4,000$$ Adverse - $$\$ 4,500$$ Favourable - $$\$ 4.500$$ Adverse

   Last month Z Co budgeted to sell 8,000 units at a price of $$\$ 12.50$$ per unit. Actual sales last month were 9,000 units giving a total sales revenue of $$\$ 117,000$$.
What was the sales price variance for last month?
- $$\$ 4,000$$ Favourable
- $$\$ 4,000$$ Adverse
- $$\$ 4,500$$ Favourable
- $$\$ 4.500$$ Adverse

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ACCA FMA/FA Foundations in Accountancy-Management Accounting Interactive Text (Practice Revision Kit Not Included)

ACCA FMA/FA Foundations in Accountancy-Management Accounting Interactive Text (Practice Revision Kit Not Included)

BPP Learning Media 1st Edition

Chapter 14, Problem 13

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Step 1

The budgeted sales revenue is calculated by multiplying the budgeted number of units by the budgeted price per unit. \[ \text{Budgeted Sales Revenue} = \text{Budgeted Units} \times \text{Budgeted Price per Unit} = 8,000 \, \text{units} \times \$12.50 \, Show more…

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Last month Z Co budgeted to sell 8,000 units at a price of $$\$ 12.50$$ per unit. Actual sales last month were 9,000 units giving a total sales revenue of $$\$ 117,000$$. What was the sales price variance for last month? - $$\$ 4,000$$ Favourable - $$\$ 4,000$$ Adverse - $$\$ 4,500$$ Favourable - $$\$ 4.500$$ Adverse

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