McGraw-Hill Connect Assignment 7.1
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9
The following data pertain to Aurora Electronics for the month of February.
Static Budget
Actual
10
points
Units sold
16,000
11,000
Sales revenue
$\ 160,000
$\ 103,400
Variable manufacturing cost
6,000
40,000
Fixed manufacturing cost
21,000
21,000
Variable selling and administrative cost
14,000
9,000
Fixed selling and administrative cost
14,000
14,000
Return to question
Required:
Compute the sales-price and sales-volume variances for February.
Note: Indicate the effect of each variance by selecting \"Favorable\" or \"Unfavorable\". Select \"None\" and enter \"0\" for
no effect (i.e., zero variance).
? Answer is complete but not entirely correct.
Sales-price variance
$\ 3,399
Unfavorable
Sales-volume variance
$\ 50,000
Unfavorable
