A. Sales price variance is unfavourable
B. Sales volume variance is favourable
C. Total sales variance is unfavourable
D. Sales activity variance is Rs. 80000 (favourable)
E. Sales price variance is Rs. 2000 (unfavourable)
Choose the correct answer from the options given below:
This solution analyzes the impact of a sales price reduction on sales variances.
The Sales Price Variance (SPV) measures the difference between the actual revenue received and the revenue that would have been received if the sales had occurred at the standard price.
The Sales Volume Variance (SVV) measures the impact of the difference between the actual sales volume and the budgeted or standard sales volume.
The term 'Sales Activity Variance' can be interpreted in context. Here, it likely refers to the revenue associated with the increase in sales activity (volume) at the original price.
The Total Sales Variance (TSV) is the sum of SPV and SVV. It represents the overall difference between actual and budgeted sales revenue.
Option E suggests a specific amount for the Sales Price Variance.
Based on the analysis:
The correct option includes conclusions A, B, and D.
Which of the following may be the reasons for a material usage variance?
(A) Negligence in the use of materials
(B) Changes in basic prices of materials
(C) Poor or improper machine handling
(D) Wastage due to inefficient production methods
(E) Change in product design requiring usuage different from the standard
Choose the correct answer from the options given below:
An unfavourable overhead volume variance indicates that:
As per the information given below, what is the correct material yield variance ?
Standard input = 100 kg
Standard yield = 90 kg
Standard cost per kg of output = Rs. 20
Actual input = 200 kg
Actual yield = 182 kg
Actual cost per kg of output = Rs. 19
What is the total overhead variance in the given month experienced by the XYZ Ltd?
What is the expenditure variance of XYZ Ltd as on given month?