Question : 51) The market-share variance the difference in actual contribution margin : 1211833

 

51) The market-share variance is the difference in actual contribution margin for actual market size in units caused solely by actual market share being different from budgeted market share.

52) The sales-mix variance can be explained in terms of the budgeted contribution margin per composite unit of the sales mix.

 

53) The sales-quantity variance is favorable when budgeted unit sales exceed actual unit sales.

 

54) The sales-mix variance is the difference between budgeted contribution margin for the actual sales mix and the budgeted contribution margin for the budgeted sales mix.

 

55) The sales quantity variance is the difference between budgeted contribution margin based on actual units sold of all products at the budgeted mix, and contribution margin in the flexible budget.

56) Synor Coffee, Inc., sells two types of coffee, Colombian and Blue Mountain. The monthly budget for U.S. coffee sales is based on a combination of last year’s performance, a forecast of industry sales, and the company’s expected share of the U.S. market. The following information is provided for March:

 

ActualBudget

ColombianBlue MountainColombianBlue Mountain

Sales in pounds15,000 lbs.17,000 lbs.13,500 lbs.18,000 lbs

 

Price per pound$13.00$16.00$13.00$16.00

Variable cost per pound5.508.506.508.00

 

Contribution margin$7.50$7.50$6.50$8.00

 

Budgeted and actual fixed corporate-sustaining costs are $60,000 and $72,000, respectively.

 

Required:

a.Calculate the actual contribution margin for the month.

b.Calculate the contribution margin for the static budget.

c.Calculate the contribution margin for the flexible budget.

d.Determine the total static-budget variance, the total flexible-budget variance, and the total sales-volume variance in terms of the contribution margin.

57) Gevorg’s Electronics manufactures TVs and DVDRs. During April, the following activities occurred:

 

                                   TVs   DVDRs

Budgeted units sold19,40472,996

Budgeted contribution margin per unit$40$75

Actual units sold22,00080,000

Actual contribution margin per unit$45$76

 

Required:

Compute the following variances in terms of the contribution margin.

a.Determine the total sales-mix variance.

b.Determine the total sales-quantity variance.

c.Determine the total sales-volume variance.

58) The Octova Corporation manufactures two types of vacuum cleaners: the ZENITH for commercial building use and the House-Helper for residences. Budgeted and actual operating data for the year 20X5 are as follows:

 

Static Budget          ZENITH    House-Helper           Total

Number sold20,00080,000100,000

Contribution margin$4,600,000$15,200,000$19,800,000

 

Actual Results         ZENITH    House-Helper           Total

Number sold21,50060,00081,500

Contribution margin$6,665,000$13,200,000$19,865,000

 

Required:

a.Calculate the contribution margin for the flexible budget.

b.Determine the total static-budget variance, the total flexible-budget variance, and the total sales-volume variance in terms of the contribution margin.

59) The Octova Corporation manufactures two types of vacuum cleaners: the ZENITH for commercial building use and the House-Helper for residences. Budgeted and actual operating data for the year 20X5 are as follows:

 

Static Budget           Zenith    House-Helper           Total

Number sold20,00080,000100,000

Contribution margin$4,600,000$15,200,000$19,800,000

 

Actual Results           Zenith    House-Helper           Total

Number sold21,50064,50086,000

Contribution margin$6,665,000$14,190,000$20,855,000

 

Required:

Compute the sales-mix variance and the sales-quantity variance by type of vacuum cleaner, and in total. (in terms of the contribution margin)

 

 

 

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