Bulldogs Inc. wants to analyze its variances in its actual and budgeted operation. · There is no difference between the actual gross profit and budgeted gross profit. · The quantity of units sold is the same as the budgeted units sold. · Actual Units sold at budgeted sales price is P10,000 · Actual Units sold at budgeted cost price is P8,000 · Budgeted Sales is at P10,000 and the actual sales is P1,500 greater than the budgeted sales · Budgeted Cost of Goods Sold is at P8,000 and the actual Cost of Goods Sold is P1,200 greater than the budgeted Cost of Goods Sold. What is the sale price variance?
Bulldogs Inc. wants to analyze its variances in its actual and budgeted operation. · There is no difference between the actual gross profit and budgeted gross profit. · The quantity of units sold is the same as the budgeted units sold. · Actual Units sold at budgeted sales price is P10,000 · Actual Units sold at budgeted cost price is P8,000 · Budgeted Sales is at P10,000 and the actual sales is P1,500 greater than the budgeted sales · Budgeted Cost of Goods Sold is at P8,000 and the actual Cost of Goods Sold is P1,200 greater than the budgeted Cost of Goods Sold. What is the sale price variance?
Chapter7: Budgeting
Section: Chapter Questions
Problem 6TP: The management of Hess, Inc., is developing a flexible budget for the upcoming year. It was not...
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Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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Bulldogs Inc. wants to analyze its variances in its actual and budgeted operation.
· There is no difference between the actual gross profit and budgeted gross profit.
· The quantity of units sold is the same as the budgeted units sold.
· Actual Units sold at budgeted sales price is P10,000
· Actual Units sold at budgeted cost price is P8,000
· Budgeted Sales is at P10,000 and the actual sales is P1,500 greater than the budgeted sales
· Budgeted Cost of Goods Sold is at P8,000 and the actual Cost of Goods Sold is P1,200 greater than the budgeted Cost of Goods Sold.
What is the sale price variance?
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