Answer (D) is correct . The budgeted prices of Xenox and Xeon were $6 and $10 per unit, respectively. Actual sales in units multiplied by the budgeted prices equals total sales
Answer (A) is incorrect because The total variance between actual and budgeted sales is $115,000 (favorable). The sales price variance is $65,000 (unfavorable), and the sales quantity variance is $180,000 (favorable), for a total favorable variance of $115,000. The sales price variance is unfavorable because actual sales were less than
Answer (B) is incorrect because The total variance between actual and budgeted sales is $115,000 (favorable). The sales price variance is $65,000 (unfavorable), and the sales quantity variance is $180,000 (favorable), for a total favorable variance of $115,000. The sales price variance is unfavorable because actual sales were less than
Answer (C) is incorrect because The actual sales price for Xeon was less than the budgeted sales price, creating a $65,000 unfavorable sales price variance.
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The variance of actual contribution margin from budgeted contribution margin attributable to sales price is
