JJ Company intended to sell 5,000 units at a price of $10 each. 6,000 units were actually sold by the company for $15 each. What is the difference in sales price? favourable $30,000.
The following formula is used to determine labour variance, which focuses especially on working rates given the actual number of hours worked: Actual Rate - (Actual Hours) (Actual Hours x Standard Rate). By calculating the gap between actual and budgeted sales volume, professionals may measure the effectiveness of their sales efforts. They might examine their current and planned sales volumes, average profit, revenue per unit, and contribution per unit to achieve this. A positive sales price variance suggests that a firm earned a higher selling price than anticipated, frequently as a result of fewer competition and strong sales tactics.
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