Question
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
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 | 114,900 | $28 |
| Product S | 148,400 | 20 |
| Product T | 22,700 | 20 |
At the end of the year, actual sales revenue for Product R and Product S was $3,159,000 and $3,081,800, respectively. The actual price charged for Product R was $27 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 $599,500 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 | $ | Unfavorable | $ | Favorable |
| Product S | $ | Unfavorable | $ | Favorable |
| Product T | $ | Unfavorable | $ | Favorable |
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Auditing Algorithms Understanding Algorithmic Systems From The Outside In Foundations And Trends
Authors: Danaë Metaxa, Joon Sung Park, Ronald E Robertson, Karrie Karahalios, Christo Wilson, Jeff Hancock, Christian Sandvig
1st Edition
1680839160, 978-1680839166
