Custom Chrome Enterprises Produces Mag Wheels for Motorcycles

question 24

Essay

Custom Chrome Enterprises produces mag wheels for motorcycles. During 2014, Custom Chrome expected to sell 275,000 mag wheels at $185 each. The actual sales for 2014 were 333,500 mag wheels at $179 each.
1- Calculate:
a. Sales Price Variance
b. Sales Volume Variance
c. Overall (Total) Sales Variance
Indicate whether Favorable or Unfavorable.
2- Calculate the variances if actual sales had been 266,000 mag wheels at $150 each.

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Definitions:

Conscious Awareness

The state of being aware of one's surroundings, actions, thoughts, or feelings.

Recognizing

The cognitive process of identifying previously encountered information, objects, or situations.

Parallel Processing

The brain's capacity to process multiple components of information simultaneously.

Familiar Objects

Items or entities that are commonly recognized by an individual due to repeated exposure or inherent knowledge.