$\begin{array}{lll}
\text { Item to Classify}&\text { Standard }&\text {Actual }\
\text { Sales Revenue } & 820,000 & 835,000 \
\text { Wages } & 125,000 & 128,000 \
\text { S\&A Expenses } & 400,000 & 408,000 \
\text { Cost of Goods Sold } & 608,000 & 600,000
\end{array}$ The sales price variance was:
A) $15,000 unfavorable.
B) $7,000 favorable.
C) $15,000 favorable.
D) $7,000 unfavorable.

Question

$\begin{array}{lll}
\text { Item to Classify}&\text { Standard }&\text {Actual }\
\text { Sales Revenue } & 820,000 & 835,000 \
\text { Wages } & 125,000 & 128,000 \
\text { S\&A Expenses } & 400,000 & 408,000 \
\text { Cost of Goods Sold } & 608,000 & 600,000
\end{array}$  The sales price variance was:
A) $15,000 unfavorable.
B) $7,000 favorable.
C) $15,000 favorable.
D) $7,000 unfavorable.

Quizplus · Accepted Answer

The sales price variance is calculated as the difference between actual sales revenue and standard sales revenue. Here, it is $835,000 (actual) - $820,000 (standard) = $15,000 favorable.

The Sales Price Variance Was: A) $15,000 Unfavorable

The Sales Price Variance Was:
A) $15,000 Unfavorable