ACCA MA · Chapter 13 · Question 4 of 10
A company sold 4,800 units for total revenue of $129,600. The standard selling price is $28 per unit. What is the sales price variance?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) $4,800 adverse
Explanation
Actual price = 129,600 / 4,800 = $27. Sales price variance = (actual price - standard price) x actual units = (27 - 28) x 4,800 = $4,800 adverse, because the selling price was lower than standard.
More Overhead and sales variances and operating statements MCQs
- Q6A standard absorption costing operating statement shows a budgeted profit of $48,000 and the following variances: sales volume $3,000 A…
- Q7Which variance appears in a standard absorption costing operating statement but NOT in a standard marginal costing operating statement?
- Q8A company has a favourable sales price variance and an adverse sales volume variance. Which of the following is the most likely explanation?
- Q9The fixed overhead expenditure variance was $2,000 favourable, and actual fixed overheads were $58,000. Budgeted output was 12,000 units…
- Q10Which of the following is the most likely cause of an adverse labour rate variance?