Question :
41)
Fresh Bread Company sells a special mix of wheat bread. : 1196118
41)
Fresh Bread Company sells a special mix of wheat bread. If the expected output equals the actual output, the sales-volume variance 41)
______ A)
will be favourable. B)
will be negative. C)
will be zero. D)
will be positive. E)
will be unfavourable.
42)
The difference between (the budgeted amount for the budgeted sales mix) and (the budgeted amount for the actual sales mix)
42)
______ A)
sales mix variance. B)
market share variance. C)
market size variance. D)
sales quantity. E)
sales volume variance.
Use the information below to answer the following question(s).
Special Tea Products has an exclusive contract with Tea Distributors. Two brands of Teas are imported, Strong and Mild, and sold to retail outlets. The monthly budget for the contract is based on a combination of last year’s performance, a forecast of general industry sales, and the company’s expected share of the Canadian market for imported Tea. The following information is provided for the month of May:
BudgetedActual
StrongMildStrongMild
Price per kg.$2.00$3.00$2.50$2.50
Variable cost /kg.
1.001.501.00 2.00
Cont. margin
$1.00$1.50$1.50$0.50
Sales (in kgs.)
2,0001,5001,7001,800
Budgeted fixed costs are $1,750. Actual fixed costs are $2,000.
43)
What is the total sales-quantity variance? 43)
______ A)
$192.86 favourable B)
$0 C)
$171.43 unfavourable D)
$172.86 favourable E)
$21.43 unfavourable
44)
What is the total sales-mix variance? 44)
______ A)
$0 B)
$450 favourable C)
$150 favourable D)
$150 unfavourable E)
$300 favourable
45)
The sales-volume variance is 45)
______ A)
(actual sales quantity in units divided by budgeted individual product selling price per unit) times budgeted sales quantity in units. B)
budgeted individual product selling price per unit times (actual sales quantity in units less budgeted sales quantity in units). C)
(actual sales quantity in units plus budgeted sales quantity in units) divided by budgeted individual product selling price per unit. D)
(budgeted contribution margin per unit) times (actual unit sales minus static budget unit sales). E)
(budgeted sales quantity in units divided by budgeted individual selling price per unit) times actual sales quantity in units.
46)
The expected sales for Radios were 1,500 units; 2,000 were sold. The budgeted selling price for Radios was $15.00; however, the actual selling price was $13.00. At a selling price of $9.00 per unit, 5,000 units of Speakers was sold during the month. Budgeted sales were 4,600 units at a selling price of $7.50. Budgeted variable costs were $4.00 per unit for the radios and $2.00 per unit for the speakers. What is the sales-volume variance for the period? 46)
______ A)
$6,700 unfavourable B)
$6,700 favourable C)
$2,200 favourable D)
$4,500 favourable E)
$2,200 unfavourable
47)
The sales-quantity variance arises because 47)
______ A)
the mix of individual products actually sold differs from the budgeted mix. B)
the mix of budgeted products sold differs from the actual product mix. C)
the total quantity of units expected to be sold differs from the static budget. D)
the budgeted sales in units cannot be achieved unless the price is decreased E)
the total quantity of units actually sold differs from the static budget.
48)
Which of the following actually calculates the sales-quantity variance? 48)
______ A)
budgeted sales mix percentage times budgeted unit selling price B)
budgeted sales mix percentage times actual unit selling price C)
budgeted sales mix percentage times budgeted unit selling price times budgeted units of all products sold D)
budgeted sales mix percentage times budgeted contribution margin per unit times (actual units of all products sold less budgeted units of all products sold) E)
budgeted sales mix percentage times budgeted unit selling price times actual units of all products sold
49)
Metal Cabinet Company manufactures two and four drawer filing cabinets. The actual units sold (5,000) equalled the expected units to be sold for both products. The four drawer cabinets constitute 66 percent of the budgeted sales mix. The selling price is $30 for four drawer cabinets and $15 for two drawer cabinets. What is the sales-quantity variance? 49)
______ A)
$49,500 B)
$101,500 C)
$25,500 D)
$0 E)
$99,000
Use the information below to answer the following question(s).
Teddy Bear Company manufactures and sells a total of 30,000 stuffed tigers and lions (15,000 each). During August the following information was gathered:
Tigers Lions
Actual selling price
$ 7.50$10.50
Budgeted selling price
$ 5.50$10.50
Actual sales mix
69%31%
Budgeted sales mix
75%25%
Variable costs budgeted (per unit)
4.75 7.25
Budget sales units
12,00011,000
50)
What is the total sales-mix variance? 50)
______ A)
$21,600 favourable B)
$4,500 unfavourable C)
$13,050 favourable D)
$4,500 favourable E)
$13,050 unfavourable
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