Question
In: Accounting
Oxford Co. produces and sells two lines of t-shirts, Classic and Mod. Oxford provides the following...
Oxford Co. produces and sells two lines of t-shirts, Classic and
Mod. Oxford provides the following data. Compute the sales price
and the sales volume variances for each product.
| Budget | Actual | |
| Unit sales price – Classic …. | $15 | $16 |
| Unit sales price–Mod ……. | $20 | $19 |
| Unit sales–Classic ………… | 2,400 | 2,500 |
| Unit sales–Mod ………….. | 2,000 | 1,900 |
Solutions
Expert Solution
| Particulars | Classic | Mod |
| Actual selling price | 16 | 19 |
| Less: standard price | (15) | (20) |
| Variance per unit | 1 | (1) |
| × units sold | 2,500 | 1,900 |
| Sales price variance | 2,500 | (1,900) |
| Actual sales | 2,500 | 1,900 |
| Less: standard | (2,400) | (2,000) |
| Volume difference | 100 | (100) |
| × standard price | 15 | 20 |
| Sales volume variance | 1,500 | (2,000) |
ekkarill92 answered 2 years agoRelated Solutions
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