Part 3:

The following information pertains to an item sold by Barnes Company:

	Budget	Actual
Unit sales	4,000	3,800
Unit selling price	$800	$840
Unit standard variable costs	$320

Required:

a. Determine the sales price variance.

b. Determine the sales volume variance.

c. Reconcile the difference between budgeted and actual revenues using the sales variances computed in requirements a and b.

d. Compute the net sales volume variance.

e. Determine the total contribution margins for budgeted and actual volumes using standard costs.