Sales Price Variance, Sales Volume Variance, Overall Sales Variance
Saginaw Company is a garden products wholesale firm. In December, Saginaw Company expects to sell 23,000 bags of vegetable fertilizer at an average price of $5.6 per bag. Actual results are 23,700 bags sold at an average price of $5.5 per bag.
Required:
1. Calculate the sales price variance for December.
$
Favorable or Unfavorable?
2. Calculate the sales volume variance for December.
$
Favorable or Unfavorable?
3. Calculate the overall sales variance for December.
$
Favorable or Unfavorable
4. What if December sales were actually 22,800 bags calculate the new sales price variance?
$
Favorable or Unfavorable?
The sales volume variance?
$ -
Favorable or Unfavorable?
The overall sales variance?
$
Favorable or Unfavorable?