Question

5-d. the following chart shows the projected and actual sales for several models of televisions in an appliance store. complete the chart by calculating the amount the actual sales varied from the budgeted amounts. next, calculate the percentage of variance from projected sales for each item. finally, determine the total variance between projected and actual sales and the percentage of variance between planned and actual sales.

model no. projected sales actual sales variance percentage variance
xtl-13 $11,325 $13,250
zt-13 11,985 9,995
xtl-15 12,840 10,620
zt-15 13,825 15,385
mg-19 11,540 11,540
rc-19 12,650 9,985
mg-25 19,020 21,855
rc-25 20,330 20,960
mb-45 13,790 15,015
totals

Explanation:

Step1: Calculate variance for each model

Variance = Actual Sales - Projected Sales
For XTL - 13: $13250 - 11325=1925$
For ZT - 13: $9995 - 11985=-1990$
For XTL - 15: $10620 - 12840=-2220$
For ZT - 15: $15385 - 13825 = 1560$
For MG - 19: $11540 - 11540=0$
For RC - 19: $9985 - 12650=-2665$
For MG - 25: $21855 - 19020 = 2835$
For RC - 25: $20960 - 20330 = 630$
For MB - 45: $15015 - 13790 = 1225$

Step2: Calculate percentage variance for each model

Percentage Variance=$\frac{\text{Variance}}{\text{Projected Sales}}\times100\%$
For XTL - 13: $\frac{1925}{11325}\times 100\%\approx17.0\%$
For ZT - 13: $\frac{- 1990}{11985}\times100\%\approx - 16.6\%$
For XTL - 15: $\frac{-2220}{12840}\times100\%\approx - 17.3\%$
For ZT - 15: $\frac{1560}{13825}\times100\%\approx11.3\%$
For MG - 19: $\frac{0}{11540}\times100\% = 0\%$
For RC - 19: $\frac{-2665}{12650}\times100\%\approx - 21.1\%$
For MG - 25: $\frac{2835}{19020}\times100\%\approx14.9\%$
For RC - 25: $\frac{630}{20330}\times100\%\approx3.1\%$
For MB - 45: $\frac{1225}{13790}\times100\%\approx8.9\%$

Step3: Calculate total projected and actual sales

Total Projected Sales = $11325+11985 + 12840+13825+11540+12650+19020+20330+13790=137305$
Total Actual Sales = $13250+9995+10620+15385+11540+9985+21855+20960+15015=128605$

Step4: Calculate total variance

Total Variance = Total Actual Sales - Total Projected Sales=$128605 - 137305=-8700$

Step5: Calculate total percentage variance

Total Percentage Variance=$\frac{-8700}{137305}\times100\%\approx - 6.3\%$

Answer:

Model No.	Projected Sales	Actual Sales	Variance	Percentage Variance
ZT - 13	$11,985$	$9,995$	$-1990$	$\approx - 16.6\%$
XTL - 15	$12,840$	$10,620$	$-2220$	$\approx - 17.3\%$
ZT - 15	$13,825$	$15,385$	$1560$	$\approx11.3\%$
MG - 19	$11,540$	$11,540$	$0$	$0\%$
RC - 19	$12,650$	$9,985$	$-2665$	$\approx - 21.1\%$
MG - 25	$19,020$	$21,855$	$2835$	$\approx14.9\%$
RC - 25	$20,330$	$20,960$	$630$	$\approx3.1\%$
MB - 45	$13,790$	$15,015$	$1225$	$\approx8.9\%$
Totals	$137305$	$128605$	$-8700$	$\approx - 6.3\%$