Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Revenue variances a . Compute the normal revenue with a $ 2 0 selling price. b . Compute the planned revenue with a $ 1

image text in transcribed
Revenue variances
a. Compute the normal revenue with a $20 selling price.
b. Compute the planned revenue with a $19 selling price.
$
c. Compute the actual revenue for November, assuming 125,000 units were sold in November at $19 per unit.
$
d. Compute the revepue arice variance assumina 135 Opo units were sold in November at $19 per unit.
x
e. Compute the revenue volume variance, assuming 135,000 units were sold in November at $19 per unit.
$ q,x Unfavorable
f. Analyze and interpret the lowering of the price to $19.
Decreasing the selling price to $19 did
total revenue, but it did not !
the revenues by 16% as planned.
Foedback
T Check My Work
Normal revenue is computed using the normal selling prices and normal units sold.
b. Planned revenue is computed using the planned selling price and planned units sold.
Actual Revenue for November is computed using the actual selling price and actual units sold.
d. For the computation of the Revenue Price Variance, use planned and actual selling prices and the actual units sold.
For the computation of the Revenue Volume Variance, use planned and actual units sold and the planned selling price.
Consider whether lowing the selling price creates a favorable or an unfavorable revenue volume variance.
image text in transcribed

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

Horngrens Accounting

Authors: Tracie L. Miller Nobles, Brenda L. Mattison, Ella Mae Matsumura, Carol A. Meissner, Jo Ann L. Johnston, Peter R. Norwood

10th Canadian edition Volume 2

978-0134213118, 134213114, 133855384, Google Book, 978-0133855388

More Books

Students also viewed these Accounting questions

Question

please eleborate looking at 2021 financials

Answered: 1 week ago

Question

_____ 9. the reason an individual takes an action

Answered: 1 week ago

Question

Discuss the importance of hiring the right employees.

Answered: 1 week ago