Variance Analysis - Practice
Variance Analysis - Practice
Last Month's budgeted and actual sales and margins are as follows:
Budget Actual
Unit Sales Unit Margin Unit Sales Unit Margin
Product 1 3200 10 2850 10.2
Product 2 1700 13 2500 12.58
Product 3 5100 9 4250 8.8
10000 10 10.2
Required: Determine the gross margin mix, sales volume, and selling price variances.
Calculate the net gross margin variance directly; then as a check if it equals the sum of
the three variances components calculated individually.