Sales in units planned 1000 actual 1020 Selling price per un

Sales in units planned 1,000, actual 1020. Selling price per unit planned $7. actual $6 9 Varlable cost per unit 54 5 for planned and achual is the price variance Favorable or unfavorable a Favorable O b Unfavorable O c Neutral

Solution

Solution:

Assuming the question is asking for Sales Price Variance since no other information available.

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 = Actual Units Sold x Standard Price Per Unit

Sales Price Variance = Actual Sales Units (standard price per unit – actual price per unit)

= 1020 Units ($7 – 6.9)

= 1020 x 0.10

= $102

Since the actual selling price per unit is $6.9 which is less than the standard per unit selling price $7. It means sales revenue is less than expected.

So, the Sales Price Variance is Unfavorable

Hence, the correct option is Unfavorable

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