SDI Inc. expected to sell in October 2022 1,000 units of smartphones with a purchase cost per unit of P55,000, and expected to earn a gross profit per unit of P10,000. At the end of the month, after selling 100 more units, it reported a shortfall in actual gross profit by P1,200,000 partly because purchase cost increased by P1,000 per unit. How much is the sales price variance? Answer Format: 1,111,111 F or 1,111,111 U

SDI Inc. expected to sell in October 2022 1,000 units of smartphones with a purchase cost per unit of P55,000, and expected to earn a gross profit per unit of P10,000. At the end of the month, after selling 100 more units, it reported a shortfall in actual gross profit by P1,200,000 partly because purchase cost increased by P1,000 per unit. How much is the sales price variance? Answer Format: 1,111,111 F or 1,111,111 U

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter9: Evaluating Variances From Standard Costs

Section: Chapter Questions

Problem 25E: Lowell Manufacturing Inc. has a normal selling price of 20 per unit and has been selling 125,000...

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expected to sell in October 2021 1,000 units of Dell laptops with a purchase cost per unit of PHP55,000, and expected to earn a gross profit per unit of PHP10,000. At the end of the month, after selling 100 more units, it reported a shortfall in actual gross profit by PHP1.20 million partly because purchase cost increased by PHP1,000 per unit. How much is the sales price variance?
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Lowell Manufacturing Inc. has a normal selling price of 20 per unit and has been selling 125,000 units per month. In November, Lowell Manufacturing decided to lower its price to 19 per unit expecting it can increase the units sold by 16%. a. Compute the normal revenue with a 20 selling price. b. Compute the planned revenue with a 19 selling price. c. Compute the actual revenue for November, assuming 135,000 units were sold in November at 19 per unit. d. Compute the revenue price variance, assuming 135,000 units were sold in November at 19 per unit. e. Compute the revenue volume variance, assuming 135,000 units were sold in November at 19 per unit. f. Analyze and interpret the lowering of the price to 19.
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