KSO budgeted to sell 10,000 units of a new product during 20X0. The budgeted sales price was $10 per unit, and the variable cost $3 per unit. Actual sales in 20X0 were 12,000 units and variable costs of sales were $30,000, but sales revenue was only $5 per unit. With the benefit of hindsight, it is realised that the budgeted sales price of $10 was hopelessly optimistic, and a price of $4.50 per unit would have been much more realistic. Required Calculate planning and operational variances for sales price.
【参考答案及解析】
The only variances are selling price variances. Planning (selling price) variance $ per unit Original budgeted sales price 10.00 Revised budgeted sales price 4.50 Sales price planning variance 5.50 (A) The planning variance is adverse because the revised sales price is lower than the sales price in the original budget. As a result, actual profit will not achieve the budgeted profit level. The total sales price planning variance is obtained by multiplying the planning variance per unit by the actual number of units sold (not the budgeted number of units sold). Sales price planning variance = $5.50 per unit (A) × 12,000 units sold = $66,000 (A). Operational (selling price) variance The sales price operational variance is calculated in the same way as a 'normal' sales price variance, except that the sales price in the revised budget is used, not the original budget. $ 12,000 units sold for (12,000 × $5) 60,000 They should have sold for (× $4.5) 54,000 Operational (selling price) variance 6,000 (F)
The only variances are selling price variances. Planning (selling price) variance $ per unit Original budgeted sales price 10.00 Revised budgeted sales price 4.50 Sales price planning variance 5.50 (A) The planning variance is adverse because the revised sales price is lower than the sales price in the original budget. As a result, actual profit will not achieve the budgeted profit level. The total sales price planning variance is obtained by multiplying the planning variance per unit by the actual number of units sold (not the budgeted number of units sold). Sales price planning variance = $5.50 per unit (A) × 12,000 units sold = $66,000 (A). Operational (selling price) variance The sales price operational variance is calculated in the same way as a 'normal' sales price variance, except that the sales price in the revised budget is used, not the original budget. $ 12,000 units sold for (12,000 × $5) 60,000 They should have sold for (× $4.5) 54,000 Operational (selling price) variance 6,000 (F)