Exercise 6-3 Vaughn Sports sells volleyball kits that it purchases from a sports

Question

Exercise 6-3 Vaughn Sports sells volleyball kits that it purchases from a sports equipment distributor. The following static budget based on sales of 200 kits was prepared for the year. Fixed operating expenses account for 8% of total operating expenses at this level of sales. Sales Cost of goods sold (all variable) 6,000 Gross margin Operating expenses Operating income $10,000 4,000 3,500 500 Assume that during the year Vaughn Sports actually sold 210 volleyball kits during the year at a price of $5 per kit Calculate the sales price variance. (If variance is zero, select "Not Applicable" and enter o for the amounts.) Sales price variance $ Click if you would like to Sntetion: Open Show Work Favorable W W Unfavorable

Explanation / Answer

Sales Price Variance = (Actual Price-Budgeted Price)*Actual Sales quantity = (5.00-50.00)*210 = $   9,450.00 Unfavorable Working: Budgeted Sales Price = Budgeted Sales revenue / Budgeted sales units = $ 10,000.00 / 200 = $         50.00

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---