Cardiff Sports sells footballs and shoulder pads. For 2013, company management b
ID: 2495209 • Letter: C
Question
Cardiff Sports sells footballs and shoulder pads. For 2013, company management budgeted the following:
At the end of 2013, management was told that actual sales of footballs were 19,040 units and the sales price variance was $57,120 unfavorable. Sales of shoulder pads generated $1,757,592 of revenue, with an unfavorable sales volume variance of $441,000.
a. Compute the budgeted sales volume for each product.
b. Compute the sales volume variance for footballs.
$ _________________ _________________
c. Compute the sales price variance for shoulder pads. Round intermediate calculations and your final answer to the nearest cent, if rounding is required.
$ _________________ _________________
d. Which of the listed conditions could not have contributed to the unfavorable variances?
_________________
Explanation / Answer
Calculation of budgeted sales volume for each product:
Footballs
Shoulder Pads
Sales revenue (A)
$ 1,001,000
$ 1,955,100
Unit sales price (B)
$ 55
$ 49
Budgeted sales volume = A/B
18200
39900
Calculation of budgeted sales volume for each product:
Footballs
Shoulder Pads
Sales revenue (A)
$ 1,001,000
$ 1,955,100
Unit sales price (B)
$ 55
$ 49
Budgeted sales volume = A/B
18200
39900