Question

Seattle Co uses variance analysis to control costs and revenues. Information concerning sales is as follows: $$ \begin{array}{ll} \text { Budgeted selling price } & \$ 15 \text { per unit } \\ \text { Budgeted sales units } & 10,000 \text { units } \\ \text { Budgeted profit per unit } & \$ 5 \text { per unit } \\ \text { Actual sales revenue } & \$ 151,500 \\ \text { Actual units sold } & 9,800 \text { units } \end{array} $$ What is the sales volume profit variance? - $$\$ 500$$ Favourable - $$\$ 1,000$$ Favourable - $$\$ 1,000$$ Adverse - $$\$ 3,000$$ Adverse

   Seattle Co uses variance analysis to control costs and revenues. Information concerning sales is as follows:
$$
\begin{array}{ll}
\text { Budgeted selling price } & \$ 15 \text { per unit } \\
\text { Budgeted sales units } & 10,000 \text { units } \\
\text { Budgeted profit per unit } & \$ 5 \text { per unit } \\
\text { Actual sales revenue } & \$ 151,500 \\
\text { Actual units sold } & 9,800 \text { units }
\end{array}
$$
What is the sales volume profit variance?
- $$\$ 500$$ Favourable
- $$\$ 1,000$$ Favourable
- $$\$ 1,000$$ Adverse
- $$\$ 3,000$$ Adverse
Show more…
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 10 ↓

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The budgeted selling price per unit is \$15 and the budgeted sales units are 10,000 units. Therefore, the budgeted sales revenue is: \[ \text{Budgeted Sales Revenue} = \text{Budgeted Selling Price per Unit} \times \text{Budgeted Sales Units} = \$15 \times  Show more…

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Seattle Co uses variance analysis to control costs and revenues. Information concerning sales is as follows: $$ \begin{array}{ll} \text { Budgeted selling price } & \$ 15 \text { per unit } \\ \text { Budgeted sales units } & 10,000 \text { units } \\ \text { Budgeted profit per unit } & \$ 5 \text { per unit } \\ \text { Actual sales revenue } & \$ 151,500 \\ \text { Actual units sold } & 9,800 \text { units } \end{array} $$ What is the sales volume profit variance? - $$\$ 500$$ Favourable - $$\$ 1,000$$ Favourable - $$\$ 1,000$$ Adverse - $$\$ 3,000$$ Adverse
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