Solution-Determine the company sales volume variance

Determine the company sales volume variance

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Reference no: EM132866424

Problem - XYZ Inc. sells a single product for a budgeted selling price of $20 per unit. Budgeted Direct materials costs were $5 per unit, while Budgeted Direct Labour and Variable Overhead costs were $3 and $2 respectively. Budgeted Fixed overhead costs amount $25,000 per month. The company has a practical production capacity of 10,000 units per month. Budgeted Variable selling costs are $2 per unit. Budgeted Fixed selling costs are $2,000 per month. During the company's first month of operations, the company produced 10,000 units and sold 9,500 units at an average selling price of $18 per unit. Fixed and variable costs were as budgeted. Determine the company's sales volume variance?

Reference no: EM132866424

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Determine the company sales volume variance

Reference no: EM132866424

Reference no: EM132866424

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