(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).

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Definitions:

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Living organisms typically able to move voluntarily, reproduce sexually, consume organic material, breathe oxygen, and grow from a hollow sphere of cells (the blastula) in embryonic development.

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