Custom Chrome Enterprises Produces Mag Wheels for Motorcycles

Essay

Custom Chrome Enterprises produces mag wheels for motorcycles. During 2014, Custom Chrome expected to sell 275,000 mag wheels at $185 each. The actual sales for 2014 were 333,500 mag wheels at $179 each.
1- Calculate:
a. Sales Price Variance
b. Sales Volume Variance
c. Overall (Total) Sales Variance
Indicate whether Favorable or Unfavorable.
2- Calculate the variances if actual sales had been 266,000 mag wheels at $150 each.