Model: Sales variances
The standard cost data of three products x, y and z manufactured by a company are given as follows, together with the budgeted sales and unit-selling prices for 2009–2010:
|
X |
Y |
z |
|
|
Budgeted sales (units) |
25,000 |
20,000 |
15,000 |
|
Selling price per unit (Rs.) |
40 |
40 |
80 |
|
Cost per unit (Rs.) |
28 |
48 |
64 |
In April 2009, the cost department of the company gathered the following details for 2009–2010:
|
x |
r |
z |
|
|
Budgeted sales (units): |
20,000 |
22,000 |
16,000 |
|
Average sales realization/unit: |
42 |
56 |
81 |
|
Actual cost per unit: |
30 |
50 |
63 |
You are required to determine:
- the budgeted and the actual profit for 2009 – 2010.
- the variance in profit analysed into:
- Cost variance
- Sales-price variance
- Sales-volume variance