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I found this question in exam kit….(q) A COMPANY SELLS A SINGLE PRODUCT. The sales budget for a period was 8000 units at a selling price of $2.5 per unit.8320 units were actually sold in the period for a total revenue of $19968.What is the total sales revenue variance comparing the actual revenue against the flexed budget? Answer in exam kit was: $32 adverse..but i did it like this-Flexed (8320 x $2.5)=20800.Actual was $19968.So variance is ($20800-$19968)=$832 adverse…Am i right or exam kit?
What you have calculated is a sales price variance.
The question is a confusing because when calculating sales variances the budget is not flexed.
Total sales revenue variance is 2.5mx 8,000 — 19,968 = 32,000 A
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