Sales Volume Variance Analysis

question 63

Essay

Sales volume variance analysis.Ralston Company prepared a budget last period with budgeted sales of 55,000 units at a price of $75 each.Variable costs were budgeted to be $10 per unit.Fixed costs were budgeted to be $2,000,000 for the period.During the period,actual sales totaled 58,000 units.
Required:
Prepare a variance report to show the difference between the master budget and the flexible budget.
(Ralston Company;sales volume variance analysis. )

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Definitions:

Retrieval Cues

Stimuli or cues that assist in the recall of information stored in memory.

Recall

The cognitive process of retrieving information from memory, allowing for the conscious recollection of past experiences and knowledge.

Recognition

The cognitive process of identifying information that has been previously learned or experienced.

Primacy Effect

The tendency to remember items at the beginning of a list better than those in the middle or at the end.