The sales price variance is computed based on the actual number of units sold, not the number of units forecast in the static budget.

Question

Quizplus · Accepted Answer

The sales price variance is calculated by comparing the actual sales revenue to what the sales revenue would have been if the actual number of units sold had been sold at the budgeted price. This focuses on the difference due to the selling price, not the quantity sold, hence it's based on the actual number of units sold.

The Sales Price Variance Is Computed Based on the Actual