Holland Company is a garden products wholesale firm. In December, Holland Company expects to sell 60,000 bags of vegetable fertilizer at an average price of $5.50 per bag. Actual results are 60,650 bags sold at an average price of $5.40 per bag.

Required:

1. Calculate the sales price variance for December. $__________ Favorable or Unfavorable

2. Calculate the sales volume variance for December. $__________ Favorable or Unfavorable

3. Calculate the overall sales variance for December. $__________ Favorable or Unfavorable

4. What if December sales were actually 59,800 bags? How would that affect the sales price variance?

Increase or Decrease

The sales volume variance?

Favorable or Unfavorable

The overall sales variance?

Favorable or Unfavorable