CPA · Question 02 · Area I: Business Analysis
A company is analyzing its gross margin variance. The budgeted data for the quarter indicated sales of 10,000 units at $50 per unit with a standard cost of $30 per unit. Actual results showed sales of 11,000 units at $48 per unit with an actual cost of $32 per unit.<br/><br/>Which of the following correctly identifies the sales price variance and the sales volume variance?
Answer options:
Sales Price Variance: $20,000 Favorable; Sales Volume Variance: $20,000 Favorable
Sales Price Variance: $22,000 Unfavorable; Sales Volume Variance: $50,000 Favorable
Sales Price Variance: $22,000 Unfavorable; Sales Volume Variance: $50,000 Favorable
Sales Price Variance: $20,000 Unfavorable; Sales Volume Variance: $48,000 Favorable
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