QS 21-21 Sales variances LO A1

In a recent year, BMW sold 216,544 of its 1 Series cars. Assume the company expected to sell 225,444 of these cars during the year. Also assume the budgeted sales price for each car was $31,000, and the actual sales price for each car was $31,300.

AQ = Actual Quantity SQ = Standard Quantity AP = Actual Price SP = Standard Price Compute the sales price variance and the sales volume variance.