Use the following information to answer the following Questions
The Step Company has the following information for the year just ended:

-The Step Company's sales-price variance is:
A) $3,000 unfavorable.
B) $7,000 unfavorable.
C) $7,000 favorable.
D) $7,500 unfavorable.
E) $7,500 favorable.

Question

Use the following information to answer the following Questions
The Step Company has the following information for the year just ended:

-The Step Company's sales-price variance is:
A) $3,000 unfavorable. 
B) $7,000 unfavorable. 
C) $7,000 favorable. 
D) $7,500 unfavorable. 
E) $7,500 favorable.

Quizplus · Accepted Answer

The sales-price variance is calculated as the difference between the actual selling price and the budgeted selling price, multiplied by the actual quantity sold. The $7,000 favorable variance indicates that the actual selling price was higher than the budgeted price, resulting in increased revenue.

Use the Following Information to Answer the Following Questions