Mountain sports equipment company projected sales of 78,000 units at a sale price of $12 for the year 2015. Actual sales of 2015 were 75,000 units at $14.00 per unit. Variable costs were budgeted at $3 per unit and the actual amount was $4 per unit. Budgeted fixed costs totaled $375,000, while actual fixed costs amounted to $400,000.
What is the sales volume variance for total revenue.
what is the flexible budget variance for variable expenses.
Sales volume variance for total revenue:
Budgeted total revenue = 78000*12 = $936,000
Actual total ...
For given data variance of total revenue and variable expenses are estimated with clear, easy-to-follow calculations.