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Price Variance =Actual dollar sales-(units sold x budgeted unit price) Volume Variance =(Actual units sold x budgeted average unit contribution margin)-Budgeted contribution margin Mix Variance =(Average unit margin for units sold- Average unit margin for budgeted units) x Actual units sold Cost Variance =Budgeted fixed costs - Actual fixed costs

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The change in the quantity of money is not equal to thechange in the monetary base because of the multipliereffect.

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Page 1: Managerial Accounting

Price Variance =Actual dollar sales-(units sold x budgeted unit price)

Volume Variance =(Actual units sold x budgeted average unit contribution margin)-Budgeted contribution margin

Mix Variance =(Average unit margin for units sold-Average unit marginfor budgeted units) x Actual units sold

Cost Variance =Budgeted fixed costs - Actual fixed costs

Page 2: Managerial Accounting

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