Homework SourseSales volume variance analysis Domaine Company prepared a bu
Sales volume variance analysis. Domaine Company prepared a budget last period that
called for sales of 14,000 units at a price of $12 each. Variable costs per unit were
budgeted to be $5. Fixed costs were budgeted to be $21,000 for the period. During the
period, actual sales totaled 14,200 units.
Prepare a variance report to show the difference between the master budget and the
?exible budget
Solution
Solution:
| Variance Report between master budget and flexible budget | ||||
| Particulars | Master Budget | Flexible Budget | Variance | |
| Sales units | 14000.00 | 14200.00 | ||
| Sales Revenue | $168,000.00 | $170,400.00 | $2,400.00 | Favourable |
| Variable cost | $70,000.00 | $71,000.00 | $1,000.00 | Unfavourable |
| Fixed costs | $21,000.00 | $21,000.00 | $0.00 | No Effect |
