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Variance for Total Revenue and Variable Expenses

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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.

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Sales volume variance for total revenue:

Budgeted total revenue = 78000*12 = $936,000

Actual total ...

Solution Summary

For given data variance of total revenue and variable expenses are estimated with clear, easy-to-follow calculations.