Question

Q No. 3 ABC Ltd. furnishes the following information relating to the budgeted sales and actual sales for
the December 2019:
Products
Sales Quantity
Selling Price
(Units)
(Per unit Rs.)
Budgeted Sales M
1200
12
N
800
25
2000
30
Actual Sales
M
880
15
880
25
2640
28
zo zo
Calculate the following variances
I. Sales Quantity Variance
II. Sales Mix Variance
Sales price variance
IV. Total sales variance
​

Answer 1

Answer:

1. Sales quantity Variance = Std. Rate x (std. Qty - revised sales)

product M = 12 X (1200- 1320) = 1440A

product B = 25 × (800-880) = 2000A

product O = 39 × (2000-2200) = 6000A

2.sales mix variance = standard rate × (revised standard quantity - actual quantity)

product M = 12×(1320-880) = 5280F

product N = 25×(880-880 = nil

product O = 30×(2200-2640) = 13200A

3. sales price variance = actual Qty × (std rate - actual rate)

product M = 889×(12-15) = 2640 A

product N = 880×(25-25) = nil

product O = 2640×(30-28) =5280F

4. total sales variance = budgeted sales - actual sales

= 94400-109129 = 14720A