Mia Wiz sells computers. During May, it sold 350 computers at a $1,200 per unit price. The

Question:

Mia Wiz sells computers. During May, it sold 350 computers at a $1,200 per unit price. The fixed budget for May predicted sales of 365 computers at an per unit price of $1,100.

1. Compute the sales price variance and identify it as favorable or unfavorable.
2. Compute the sales volume variance and identify it as favorable or unfavorable.