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25 June, 05:28

Clark Company's master budget reflects budgeted sales information for the month of June, 2019, as follows: Budgeted Quantity Budgeted Unit Sales Price Product A 40,000 $7 Product B 48,000 $9 During June, the company actually sold 39,000 units of Product A at an average unit price of $7.10 and 49,600 units of Product B at an average unit price of $8.90. Prepare a Sales Budget Report for the month of June for Clark Company which shows whether the company achieved its planned objectives.

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  1. 25 June, 06:20
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    Total sales variance $87,340 Favorable

    See report below

    Explanation:

    The sales budget for the month of June would like as follows:

    Budgeted Sales

    Product units Price Total ($)

    A 40,000 $7 280,000

    B 39,000 $9 351,000

    Actual sales

    Product units Price Total ($)

    A 39,000 $7.10 276,900

    B 49,600 $8.90 441440

    Sales Budget Report for the month of June 2019

    Budget Actual Variance ($)

    A 280,000 276,900 3,100 Unfavorable

    B 351,000 441,440 90,440 favorable

    Total sales variance 87,340 Favorable
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