(Appendix 11A)Wanda's Wand Shop Sells a Variety of Magic Wands

question 39

Essay

(Appendix 11A)Wanda's Wand Shop sells a variety of magic wands. In a recent month, Wanda's accounting information system revealed the following information:
Budget Actual
Units 2,500 3,200
Sales revenue $10,000 $12,000
Variable product costs 1,200 2,000
Fixed manufacturing costs 800 700
Variable selling costs 1,500 1,400
Fixed nonmanufacturing costs 500 600
a)Calculate the following variances:
Revenue budget variance
Sales price variance
Revenue sales quantity variance
b)Suggest two reasons why managers might be interested in investigating one or more of the variances in part (a).

---

Definitions:

Tremendous Stress

A high level of psychological or emotional strain and tension resulting from adverse or very demanding circumstances.

Skin Care

The practice of maintaining skin integrity, enhancing its appearance, and relieving skin conditions through various products and procedures.

Emotional Responses

The psychological reactions consisting of feelings and emotions that occur as a result of encountering a stimulus or situation.

Prolonged Hospitalization

Extended stay in a hospital beyond the expected period, often due to complicated health issues or recovery processes.