Sales Price Variance, Sales Volume Variance, Overall Sales

Variance Holland Company is a garden products wholesale firm. In December, Holland Company expects to sell 51,000 bags of vegetable fertilizer at an average price of $5.40 per bag. Actual results are 51,650 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.

$____________ Unfavorable

4. What if December sales were actually 50,800 bags? How would that affect the sales price variance? Decrease

The sales volume variance? Unfavorable

The overall sales variance? Unfavorable