Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

NaLu Company sells footballs and shoulder pads. For 2013, company management budgeted the following: Footballs Shoulder Pads Sales Revenue $1,200,000 $1,800,000 Unit Sales Price $60

NaLu Company sells footballs and shoulder pads. For 2013, company management budgeted the following:

Footballs Shoulder Pads

Sales Revenue $1,200,000 $1,800,000

Unit Sales Price $60 $45

At the end of 2013, management was told that actual sales of footballs were 21,000 units and the sales price variance was $63,000 unfavorable. Sales of shoulder pads generated $1,680,000 revenue, with an unfavorable sales volume variance of $360,000.

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.

d. What conditions might have contributed to the revenue variances?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Data Analytics for Accounting

Authors: Vernon Richardson

1st edition

1260375196, 9781260375183 , 978-1260375190

More Books

Students also viewed these Accounting questions

Question

How would you describe your home and neighborhood?

Answered: 1 week ago