Determining sales and variable cost volume
Munoz Publications established the following standard price and costs for a hardcover picture book that the company produces:
Standard price (SP) per book: $20.00
Standard variable cost (SVC) per book: $12.00
During the month of January, the company produced and sold 6,000 books. Actual sales for the month totaled $120,000, and actual variable costs amounted to $73,000.
Required:
Calculate the following variances for Munoz Publications for the month of January:
a) Sales volume variance
b) Sales price variance
c) Variable cost volume variance
d) Variable cost price variance