When would a sales price variance be listed as unfavorable M

When would a sales price variance be listed as unfavorable? Multiple Choice When the actual sales price is equal to the standard sales price When the actual sales volume is less than the budgeted sales volume When the actual sales price is greater than the standard sales price. When the actual sales price is less than the standard sales price

Solution

Sales Price VAriance :

Sales price variance is the difference between the actual total price of goods sold and the standard total price of actual sales.

Standard total price equals actual units sold multiplied by budgeted price per unit.

Sales price variance is the change in revenue of a product caused only due to variation in price.

Formula

Sales Price Variance:

Hence Sales price variance is UNFAVOURABLE when the actual sales price is less than standard sales price.

=	(Actual Price - Standard Price)	x	Actual Units sold
=	(Actual Price x Actual Units Sold)	-	(Standard Price x Actual Units Sold)
=	Actual Sales Revenue	-	Standard Revenue of Actual Units Sold