Variance Saginaw Company is a garden products wholesale firm. In December, Saginaw Company expects to sell 22,000 bags of vegetable fertilizer at an average price of $5.50 per bag. Actual results are 22,750 bags sold at an average price of $5.40 per bag. What if December sales were actually 21,800 bags? How would that affect the sales price variance? by $fill in the blank 8 The sales volume variance? $fill in the blank 9 The overall sales variance? $fill in the blank 11
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
Sales Price Variance, Sales Volume Variance, Overall Sales Variance
Saginaw Company is a garden products wholesale firm. In December, Saginaw Company expects to sell 22,000 bags of vegetable fertilizer at an average price of $5.50 per bag. Actual results are 22,750 bags sold at an average price of $5.40 per bag.
What if December sales were actually 21,800 bags? How would that affect the sales price variance?
by $fill in the blank 8
The sales volume variance?
$fill in the blank 9
The overall sales variance?
$fill in the blank 11
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