WHITE CELLS ARE ADJUSTABLE

Kristoffer Burnett - Certified Management Accountant, 2009-2011

Revenue Variance Example

Item1

Item2

Item3

Item4

Item5

Totals

Budget Comparison
Budgeted sales price/unit
Budgeted unit sales
Budgeted mix percentage
Budgeted market size
Budgeted market share

Actual sales price/unit

Actual unit sales
Actual mix percentage
Actual market size
Actual market share

155.00 $
14,790
15.5%
41,780
35.4%

267.00 $
12,853
13.5%
20,831
61.7%

157.00 $
24,311
25.5%
48,428
50.2%

261.00 $
12,395
13.0%
21,261
58.3%

102.00
31,021
32.5%
57,129
54.3%

95,370
100.0% The percentage of total budgeted unit sales for each item
189,429 Total budgeted unit sales for the entire market

171.00 $
13,826
16.2%
41,149
33.6%

282.00 $
10,377
12.1%
14,625
71.0%

178.00 $
23,354
27.3%
49,491
47.2%

263.00 $
10,817
12.6%
16,867
64.1%

113.00
27,178
31.8%
53,819
50.5%

85,552
100.0% The percentage of total actual unit sales for each item
175,951 Total actual unit sales for the entire market

Actual Budget Variance

Difference in sales price
Actual unit sales
Flexible budget variance
Difference in unit sales
Budgeted sales price/unit
Sales volume variance

16.00
13,826
$ 221,216
(964)
$ 155.00
$ (149,420)

$
$

15.00
10,377
155,655
(2,476)
267.00
(661,092)

Actual budget variance

(505,437) $ 340,185

$ (390,224) $ (93,028) $

(1,303)
267.00
(347,901)
(1,173)
267.00
(313,191)

(1,273)
$ 261.00
$ (332,253)
(305)
$ 261.00
$ (79,605)

71,796

21.00
23,354
$ 490,434
(957)
$ 157.00
$ (150,249)

2.00
10,817
21,634
(1,578)
$ 261.00
$ (411,858)
$

11.00
27,178
$ 298,958 $ 1,187,897
(3,843)
$ 102.00
$ (391,986) $ (1,764,605)

Actual sales price/unit - Budgeted sales price/unit

This is the impact on total sales due to a difference in item sales prices
Actual unit sales - Budgeted unit sales
This is the impact on total sales due to a difference in unit sales

(576,708) Flexible budget variance + Sales volume variance

Sales Volume Variance

Breakdown 1
Difference in budgeted mix units
Budgeted sales price/unit
Sales quantity variance
Difference in actual mix units
Budgeted sales price/unit
Sales mix variance

(1,529)
$ 155.00
$ (236,995)
565
$ 155.00
$ 87,575

Total sales volume variance

$ (149,420) $

$
$
$
$

(2,495)
$ 157.00
$ (391,715)
1,538
$ 157.00
$ 241,466

(3,217)
$ 102.00
$ (328,134) $ (1,636,998)
(626)
$ 102.00
$ (63,852) $ (127,607)

(Actual (total) unit sales * Budgeted mix percentage) - Budgeted unit sales
This is the impact on total sales due to a difference in total unit sales
Actual unit sales - (Actual (total) unit sales * Budgeted mix percentage)
This is the impact on total sales due to a difference in mix percentage

(661,092) $ (150,249) $ (411,858) $ (391,986) $ (1,764,605) Sales quantity variance + Sales mix variance

Sales Volume Variance

Breakdown 2
Difference in market size
Budgeted sales price/unit
Market size variance
Difference in market share
Budgeted sales price/unit
Market share variance

(223)
$ 155.00
$ (34,565)
(741)
$ 155.00
$ (114,855)

Total sales volume variance

$ (149,420) $

ITEM TO CHART:

$50,000

Item4

$
$
$
$

(3,829)
267.00
(1,022,343)
1,353
267.00
361,251

534
157.00
83,838
(1,491)
$ 157.00
$ (234,087)
$
$

(2,562)
$ 261.00
$ (668,682)
984
$ 261.00
$ 256,824

(1,797)
$ 102.00
$ (183,294) $ (1,825,046)
(2,046)
$ 102.00
$ (208,692) $
60,441

(Actual market size - Budgeted market size) * Budgeted market share

This is the impact on total sales due to a difference in market size
Actual market size * (Actual market share - Budgeted market share)
This is the impact on total sales due to a difference in market share

(661,092) $ (150,249) $ (411,858) $ (391,986) $ (1,764,605) Market size variance + Market share variance

Dropdown menu

Sales Volume Variance Breakdown 1

Actual Budget Variance

$0
($79,605)

($50,000)

($100,000)

($332,253)

($150,000)

Sales quantity variance

($200,000)

Sales mix variance

Sales Volume Variance Breakdown 2

($250,000)

($300,000)
$256,824

($350,000)
($668,682)

($400,000)

($450,000)

Flexible budget variance

Item4

Sales volume variance

Actual budget variance

Market size variance

Market share variance