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	126,200	$27
Product S	140,600	20
Product T	19,100	20

At the end of the year, actual sales revenue for Product R and Product S was $3,207,500 and $2,886,100, respectively. The actual price charged for Product R was $25 and for Product S was $19. Only $10 was charged for Product T to encourage more consumers to buy it, and actual sales revenue equaled $511,500 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		Sales volume variance
Product R	______	Favorable or Unfavorable	______	Favorable or Favorable
Product S	______	Favorable or Unfavorable	______	Favorable or Favorable
Product T	______	Favorable or Unfavorable	______	Favorable or Favorable