Exercise 18.20 (Algorithmic) Pricing Strategy, Sales Variances

Eastman, Inc., manufactures and sells three products: R, S, and T. In January, Eastman, Inc., budgeted sales of the following.

	Budgeted Volume	Budgeted Price
Product R	118,300	$25
Product S	164,400	20
Product T	16,600	21

At the end of the year, actual sales revenue for Product R and Product S was $2,935,200 and $3,382,000, respectively. The actual price charged for Product R was $24 and for Product S was $19. Only $11 was charged for Product T to encourage more consumers to buy it, and actual sales revenue equaled $485,100 for this product.

Required:

1. Calculate the sales price and sales volume variances for each of the three products based on the original budget.

Sales Price Variance

Product R	122300	Unfavorable
Product S	178000	Unfavorable
Product T	_____?_____	Unfavorable

Sales Volume Variance

Product R	____?___	Favorable
Product S	____?____	Favorable
Product T	____?____	Favorable