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14 July, 14:02

Farad. Inc., specializes in selling used SUVs. During the month, the dealership sold 50 trucks at an average price of $9,000 each. The budget for the month was to sell 45 trucks at an average price of $9,500 each. AQ = Actual Quantity SQ = Standard Quantity AP = Actual Price SP = Standard Price Compute the dealership's sales price variance and sales volume variance for the month.

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  1. 14 July, 14:17
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    Instructions are listed below.

    Explanation:

    Giving the following information:

    The dealership sold 50 trucks at an average price of $9,000 each. The budget for the month was to sell 45 trucks at an average price of $9,500 each.

    Sales price variance = (standard price - actual price) * actual quantity

    Sales price variance = (9,000 - 9,500) * 50 = 25,000 favorable

    Sales quantity variance = (standard quantity - actual quantity) * standard price

    Sales quantity variance = (50 - 45) * 9,000 = 45,000 unfavorable
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