34. Sales volume variance analysis. Budgeted sales and variable costs for Brook

Question

34. Sales volume variance analysis. Budgeted sales and variable costs for Brook Electronics
for the year were as follows:
Total Sales Total Variable Costs
Product X (5,000 units) ....................................................... $ 50,000 $ 20,000
Product Y (200 units).......................................................... 10,000 8,000
Product Z (50,000 units)...................................................... 125,000 75,000
Total Budgeted ............................................................... $185,000 $103,000
Actual sales for the period were as follows:
Product X (5,300 units)............................................................................................... $ 55,650
Product Y (240 units) ................................................................................................. 11,520
Product Z (48,000 units) ............................................................................................. 96,000
Total Actual Sales ................................................................................................... $163,170
Prepare a variance report to show the difference between the master budget and the
?exible budget for each of the three products  

Explanation / Answer

Solution:

Computation Budgeted sale price for Sale and Variable cost Product X Product Y Product Z Sales revenue $50,000.00 $10,000.00 $125,000.00 Variable Costs $20,000.00 $8,000.00 $75,000.00 Sale Units 5000 200 50000 Sale Price per unit 10 50 2.5 variable cost per unit 4 40 1.5

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