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	119,200	$26
Product S	153,100	20
Product T	21,600	20

At the end of the year, actual sales revenue for Product R and Product S was $3,050,000 and $3,165,400, respectively. The actual price charged for Product R was $25 and for Product S was $19. Only $9 was charged for Product T to encourage more consumers to buy it, and actual sales revenue equaled $520,200 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