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Folsoms actual results and static budget for january 2011 -

1) Folsom Fashions sells a line of women's dresses. Folsom's actual results and static budget for January 2011 are as follows:

Actual results Static Budget Dresses sold $5,000 $6,000 Sales $235,000 $300,000 Variable costs $145,000 $180,000 Contribution Margin $90,000 $120,000 Fixed Costs $84,000 $80,000 Operating Income $ 6,000 $40,000 Compute for January 2011:

a) Sales price variance

b) Sales volume variance

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Cost Accounting: Folsoms actual results and static budget for january 2011 -

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