The Table Division Operates as a Revenue Centre with the Following

question 78

Essay

The table division operates as a revenue centre with the following relevant information for the current year:
$\begin{array}{lr} \text { Sales price var?ance} &\$ 2.000 \text { unfavourable }\\ \text { Sales volume variance } & \text { \$ 4,000 favourable}\\ \text { Budgeted unit contribution margin per unit } &\$12\end{array}$
The actual selling price was $2 less than the expected selling price and the actual number of units sold is 200 more than expected.
a.Calculate the expected sales price.
b.Calculate the actual sales price.
c.Calculate actual unit sales.
d.Calculate expected unit sales.

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Definitions:

Productivity of Labor

The measurement of the output produced by employees per unit of input, such as per hour of work.

Diminishing Returns

A principle which states that as more units of a variable input (like labor) are added to fixed inputs (like capital), the additional output from each new unit of input will eventually decrease.

Wage Rates

The fixed amount of compensation paid to employees for their labor, typically measured per hour or piece.