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Sales Price Variance, Sales Volume Variance, Overall Sales Variance Saginaw Company in a garden products wholesale firm. In December, Saginaw Company expects to sell 27,000

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Sales Price Variance, Sales Volume Variance, Overall Sales Variance Saginaw Company in a garden products wholesale firm. In December, Saginaw Company expects to sell 27,000 bags of vegetable fertilizer at an average price of $5.40 per bag. Actual results are 27,650 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 overail sales variance for December Favorable 4. What If December sales were actually 26,800 bags? How would that affect the sales price variance? Decrease by The sales volume variance! Unfavorat The overall sales variance? Unfavorable Contribution Margin Variance Lift, Inc., products and sells two types of countertop ovens-the toaster oven and the convection oven. Budgeted and actual data for the two models are shown below. Budgeted Amounts: Convection Toaster Oven Oven Total Sales (598 X 27,000) $2,645,000 ($155 x 18,000) $2.790,000 $5,436,000 1,230,000 Variable expenses 450,000 780,000 $2,010,000 Contribution margin $2,195.000 $4,206,000 Actual Amounts: Toaster Oven Convection Oven Total $1.292,000 0515240.000 (5158 12.00) 31.957,500 $3,500 1.247.000 329,700 57,500 Contibution and 51.412.500 $1,119.700 27.500 Toaster Convection Oven Oven Total Sales: ($83 x 24,000) $1,992,000 ($159 12,500) $1,987,500 $3,979,500 Variable expenses 579,200 667,800 1,247,000 Contribution margin $1,412,800 $1,319,700 $2,732,500 Required: 1. Calculate the contribution margin variance, Unfavorable 2. What if actual units sold of the convection oven decreased? How would that affect the contribution margin variance? It would become more unfavorable or less favorable. M What if actual units sold of the convection oven increased? How would that affect the contribution margin variance? It would become less unfavorable or more favorable

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