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30 May, 08:08

The Boyle Company estimated that April sales would be 150.000 units with an average seling price of $6.00. Actual sales for April were 149,000 units and average seling pnice was $6.12. a. What is the sales revenue flexible budget variance? is it favorable or unfavorable? b. What is the sales volume variance? Is it favorable or unfavorable?

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  1. 30 May, 10:47
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    Check the following calculations

    Explanation:

    Answer - a) - Sales revenue flexible budget variance = (Actual selling price - Estimated selling price) * Actual sales units

    = ($6.12 per unit - $6.00 per unit) * 149000 units

    = $17880 Favorable

    b) - Sales volume variance = (Actual sales units - Estimated sales unit) * Estimated selling price

    = (149000 units - 150000 units) * $6 per uni

    = $6000 Unfavorable
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