Question : 21) The sales-volume variance the difference between ________. A) a sales-mix : 1211830

 

21) The sales-volume variance is the difference between ________.

A) a sales-mix variance and the corresponding sales-quantity variance

B) a flexible-budget amount and the corresponding static-budget amount

C) a market-share variance and the corresponding market-size variance

D) a sales-mix variance and the corresponding market size variance

 

22) The sales-quantity variance is calculated by ________.

A) deducting budgeted contribution margin based on actual units at actual mix from budgeted contribution margin based on actual units sold at the actual mix

B) deducting budgeted contribution margin based on actual units at actual mix from budgeted contribution margin based on actual units sold at the budgeted mix

C) deducting budgeted contribution margin based on budgeted units at actual mix from budgeted contribution margin based on actual units sold at the budgeted mix

D) deducting budgeted contribution margin based on budgeted units at budgeted mix from budgeted contribution margin based on actual units sold at the budgeted mix

 

23) The sales-quantity variance results from a difference between ________.

A) the actual sales mix and the budgeted sales mix

B) the actual quantity of units sold and the budgeted quantity of unit sales in the static budget

C) actual contribution margin and the budgeted contribution margin

D) actual market size in units and the budgeted market size in units

Answer the following questions using the information below:

 

Capity Tea Products has an exclusive contract with British Distributors. Calamine and Capity are two brands of teas that are imported and sold to retail outlets. The following information is provided for the month of March:

 

ActualBudget

Calamine    CapityCalamine    Capity

Sales in pounds3,740 lbs.3,960 lbs.4,400 lbs.3,300 lbs

Price per pound$2.80$2.80$2.00$3.00

Variable cost per pound1.002.001.001.50

Contribution margin$1.80$0.80$1.00$1.50

 

Budgeted and actual fixed corporate-sustaining costs are $1,850 and $2,300, respectively.

 

24) What is the actual contribution margin for the month?

A) $9,680

B) $9,350

C) $10,560

D) $9,900

 

25) What is the contribution margin for the flexible budget?

A) $9,900

B) $9,680

C) $10,560

D) $9,350

 

26) For the contribution margin, what is the total static-budget variance?

A) $220 favorable

B) $330 unfavorable

C) $1,000 favorable

D) $550 favorable

27) For the contribution margin, what is the total flexible-budget variance?

A) $330 favorable

B) $220 favorable

C) $550 favorable

D) $1,000 unfavorable

Contribution margin for the flexible budget = (3,740 × $1.00) + (3,960 × $1.50) = $9,680

Total flexible-budget variance = $9,900 – $9,680 = $220 favorable

 

Answer the following questions using the information below:

 

Archoid’s Flowering Plants provides the following information for the month of May:

 

ActualBudget

Tulips  GeraniumsTulips  Geraniums

Sales in units4,4204,0804,9503,300

Contribution margin per unit$12$19$11$21

 

28) What is the budgeted contribution margin per composite unit for the actual mix?

A) $13.80

B) $15.00

C) $15.36

D) $15.80

 

29) What is the budgeted contribution margin per composite unit for the budgeted mix?

A) $13.80

B) $15.00

C) $15.36

D) $15.80

30) For May, the company will report a(n) ________.

A) favorable sales-mix variance

B) unfavorable sales-mix variance

C) favorable sales-volume variance

D) unfavorable sales-volume variance