Saginaw Company is a garden products wholesale firm. In December, Saginaw Company expects to sell 26,000 bags of vegetable fertilizer at an average price of $5.40 per bag. Actual results are 26,700 bags sold at an average price of $5.30 per bag.

Required:

1. Calculate the sales price variance for December. $ Unfavorable

2. Calculate the sales volume variance for December. $ Favorable

3. Calculate the overall sales variance for December. $ Favorable

4. What if December sales were actually 25,800 bags? How would that affect the sales price variance? Decrease by $

The sales volume variance? $Unfavorable

The overall sales variance? $