Q520
If an actual selling price is 400, an actual result is 250 and an actual units sold are 500, then selling price variance will be
A.
$45,000
B.
$55,000
C.
$75,000
AnswerD.
$65,000
Answer: Option C
Solution
Answer: Option C
Solution:
Selling price variance is calculated using the formula:
Selling Price Variance = (Actual Selling Price - Actual Result) x Actual Units Sold
Given:
Actual Selling Price = $400
Actual Result = $250
Actual Units Sold = 500
Substituting the values:
Selling Price Variance = (250) x 500
Selling Price Variance = $150 x 500
Selling Price Variance = $75,000
Therefore, the selling price variance will be $75,000.