Reference no: EM133146416
Question - Omar Z., a staff accountant, is working with the revenue variances for his company, BC Products. BC products sells its product through five different distribution channels: retail, wholesale, online, virtual reality, and its newest distribution method, time travel (If you have to ask, it's not for you. But I'll see you tomorrow. And yesterday.)
The following information is available for the wholesale distribution channel:
The budgeted sales in units via the wholesale channel is 10,000
The budgeted price for wholesale sales is $40 per unit
The actual sales in units via the wholesale channel is 10,800
The actual price for wholesale sales is $39 per unit.
Also, the company actually sold a total of 45,000 units (across all five distribution channels). This is less than the budgeted total sales (across all five distribution channels), which was 50,000 units.
Required -
Use the information presented for BC Products to compute the wholesale sales price variance. Please input your answer in whole, non-negative, numerals.
Use the information presented for BC Products to compute the wholesale sales mix variance. Please input your answer in whole, non-negative, numerals.
Use the information presented for BC Products to compute the wholesale sales activity variance. Please input your answer in whole, non-negative, numerals.
Use the information presented for BC Products to identify which of the following statements are true. (Choose all that apply.) Group of answer choices:
A) The sales price variance is favorable.
B) The sales mix variance is favorable.
C) The sales activity variance is favorable.