Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

QUESTION 27 Gordon Company's actual sales revenue for the year is $500,000. The flexible budget's sales revenue for the actual volume achieved is $600,000 while

image text in transcribed
QUESTION 27 Gordon Company's actual sales revenue for the year is $500,000. The flexible budget's sales revenue for the actual volume achieved is $600,000 while the static budget's sales revenue is $650,000 What is the volume variance for sales revenue? O 8. $50,000 favorable $150,000 unfavorable OC. $100,000 favorable O d. $50,000 unfavorable QUESTION 28 Somerville Corp typically sells computer chips for $250 each. To try to increase sales they run a buy one get one free offer for month. The budgeted sales for the month were 200 units. Due to the sale, they sell 400 total units (200 at regular cost and 200 free). The direct materials costs per chip is $50 and the direct labor costs are $75. The sales spending and sales volume variances are: O a Sales spending variance $25,000 F, Sales volume variance $25,000 F Ob. Sales spending variance $50,000 U, Sales volume variance $50,000 F Oc Sales spending variance $50,000 F, Sales volume variance $50,000 U O d. Sales spending variance $25,000 U, Sales volume variance $25,000 U

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

9 Keys To Successful Audits

Authors: Denise Robitaille

1st Edition

1932828680, 978-1932828689

More Books

Students also viewed these Accounting questions