Chapter 14 – Example 4

Hello,

The example 4 of chapter 14 doesn’t have answer, the current answer is for an older version. I tried to solve it due to the answer’s structure, but the result is not consistent. He is what I’ve done:

Budgeted sales margin: (A)$3 (B)$4 (C)$6
Actual sales margin: (A)$6 (B)$4 (C)$1

Sales margin variance:
Budget margin: 200*3+100*4+100*6 = $1600
Actual margin: 180*6+150*4+170*1 = $1850
Total: $250 (F)

Sales price variance:
Actual sales at actual price: 180*22+150*22+170*26 = $11680
Actual sales at standard price: 180*20+150*25+170*30 = $12450
Total sales price variance: $770 (A)

Sales mix variance:
Actual total sales at actual mix at standard profit: 180*3+150*4+170*6 = $2160
Actual total sales at standard mix at standard profit: (500*1/2)*3+(500*1/4)*4+(500*1/4)*6 = $2000
Total sales mix variance: $160 (F)

Sales quantity variance:
Budget sales at standard profit: 200*3+100*4+100*6 = $1600
Actual sales at standard profit: 180*3+150*4+170*6 = $2160
Total sales quantity variance: 560(F)

Total variance: $50 (A)

The total variance isn’t equal with the sales margin variance. Could anyone please show me my incorrect patch?