Essay
(Appendix 11A)Wanda's Wand Shop sells a variety of magic wands. In a recent month, Wanda's accounting information system revealed the following information:
Budget Actual
Units 2,500 3,200
Sales revenue $10,000 $12,000
Variable product costs 1,200 2,000
Fixed manufacturing costs 800 700
Variable selling costs 1,500 1,400
Fixed nonmanufacturing costs 500 600
a)Calculate the following variances:
Revenue budget variance
Sales price variance
Revenue sales quantity variance
b)Suggest two reasons why managers might be interested in investigating one or more of the variances in part (a).
Correct Answer:
Verified
a)Revenue budget variance: $12,000 - $10...View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Correct Answer:
Verified
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q38: (Appendix 11A)For organizations that sell multiple products,
Q40: During the current period, Richeleau Company produced
Q41: (Appendix 11A)The sales price variance is calculated
Q44: ELM Corporation introduced a new automated production
Q44: Explain how variances are closed at the
Q58: In a traditional manufacturing accounting system, the
Q74: Standard costs are developed using:<br>A) This period's
Q99: Everett, Inc. budgeted $1,488,000 for total overhead.
Q106: Everett, Inc. budgeted $1,488,000 for total overhead.
Q122: Which of the following variances is least