1. Comp Wiz sells computers. During May 2011, it sold 500 computers at a $900 average price each. The May 2011 fixed budget included sales of 550 computers at an average price of $850 each. (1) Compute the sales price variance and the sales volume variance for May 2011. (2) Interpret the findings.
2. Match the terms a–e with their correct definition 1–5.
a. Standard cost
b. Practical standard
c. Standard cost card
d. Ideal standard
e. Management by exception
1. Record that accumulates standard cost information.
2. Quantity of input required if a production process is 100% efficient.
3. Managing by focusing on large differences from standard costs.
4. Quantity of input required under normal conditions.
5. Preset cost for delivering a product or service under normal conditions.