Question 1: Sales price variance, sales volume variance, and fixed cost variance Budgeted Actual Price $300 $350 Sales volume in units 80 75 Unit VC $100 $120 Fixed costs $100,000 $120,000 a) Without computations, characterize the following variances as favorable or unfavorable: sales price variance F U sales volume variance F U fixed cost variance F U b) Compute the following variances. Enter favorable variances as a positive number and unfavorable variances as a negative number. Do NOT enter F or U after the number. sales price variance

a-1 Sales price variance is favorable (F).

a-2 Sales volume variance is favorable (F).

a-3 Fixed cost variance is unfavorable (U).

b-1 Sales price variance  = $3,750

b-2 Sales volume variance = -$1,500

b-3 Fixed cost variance = -$20,000

Explanation:

Note: This question is not complete an the data in its are merged together. The complete question with the sorted data are therefore provided as follows:

Question 1: Sales price variance, sales volume variance, and fixed cost variance

                                     Budgeted             Actual

Price                                 $300                    $350

Sales volume in units          80                         75

Unit VC                             $100                     $120

Fixed costs               $100,000              $120,000

a) Without computations, characterize the following variances as favorable or unfavorable:

sales price variance F U

sales volume variance F U

fixed cost variance F U

b) Compute the following variances. Enter favorable variances as a positive number and unfavorable variances as a negative number. Do NOT enter F or U after the number.

sales price variance

sales volume variance F U

fixed cost variance

The explanation of the answers is now given as follows:

a) Without computations, characterize the following variances as favorable or unfavorable:

a-1 Sales price variance F U

When the Actual price is greater than the Budgeted price, Sales price variance is favorable (F). But when the Actual price is less than the Budgeted price, Sales price variance is unfavorable (U).

Since the Actual price is greater than the Budgeted price in this question, the Sales price variance is favorable (F).

a-2 Sales volume variance F U

When the Actual sales volume in units is greater than the Budgeted sales volume in units, Sales volume variance is favorable (F). But when the Actual sales volume in units is less than the Budgeted sales volume in units, Sales volume variance is unfavorable (U).

Since the Actual sales volume in units is less than the Budgeted sales volume in units in this question, the Sales volume variance is unfavorable (U).

a-3 Fixed cost variance F U

When the Actual Fixed costs is less than the Budgeted Fixed costs, Fixed costs variance is favorable (F). But when the Actual Fixed costs is greater than the Budgeted Fixed costs, Fixed costs variance is unfavorable (U).

Since the Actual Fixed costs is greater than the Budgeted Fixed costs in this question, the Fixed costs variance is unfavorable (U).

b) Compute the following variances. Enter favorable variances as a positive number and unfavorable variances as a negative number. Do NOT enter F or U after the number.

b-1 Calculation of sales price variance

This can be calculated as follows:

Sales price variance = (Actual price - Budgeted price) * Actual sales volume in units = ($350 - $300) * 75 = $3,750

b-2 Calculation of sales volume variance

This can be calculated as follows:

Sales volume variance = (Actual sales volume in units - Budgeted sales volume in units) * Budgeted price = (75 - 80) * $300 = -$1,500

b-3 Calculation of fixed cost variance

Fixed cost variance = Actual fixed costs - Budgeted fixed costs = $120,00 - $100,000 = -$20,000

okay lol !