Reference no: EM132712733
Cardiff Sports sells footballs and shoulder pads. For 2013, company management budgeted the following:
Footballs Shoulder Pads
Sales revenue $1,200,000 $1,800,000
Unit sales price $60 $45
At the end of 2013, management was told that actual sales of footballs were 21,000 units and the sales price variance was $63,000 unfavorable. Sales of shoulder pads generated $1,680,000 of revenue, with an unfavorable sales volume variance of $360,000.
Required:
Problem a. Compute the budgeted sales volume for each product.
Problem b. Compute the sales volume variance for foot balls.
Problem c. Compute the sales price variance for shoulder pads.
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