Data for Lorraine Company are as follows:

Required:
1. Calculate the sales price variance.
2. Calculate the price volume variance.
3. Suppose that the product is at the end of the maturity stage of the product life cycle. What information do these two variances provide to Lorraine’s managers?

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Budgeted price $14.30 Actual price $13.00 Budgeted quantity 1,450 Actual quantity sold 1,400