find the sales mix variance and the sales quantity variance for both Product X a
ID: 2527544 • Letter: F
Question
find the sales mix variance and the sales quantity variance for both Product X and Y
?? 26, The following data applies to questions #26-29. Questions 26-29 are worth 5 points each. Winston company had two products named X and Y. The firm had the following budget for August Product X 286,000 Product Y Total 5200005060 Sales 29.00 10,400 50.00 Contribution Margin/Unit 37.00 Budgeted units sold 2,600 13,000 62.00 Selling price per unit110.00 Following are actual operating results for Winston Co. in August Product X 360,000 55.00 3,000 Product y 540,000 36.00 9,000 Total 900,000 40.75 12,000 Sales Contribution margin/ unit Units sold Total industry volume for both products X and Y was estimated to be 130,000 units at the time of the budget. Actual industry volume for the period for products X and Y combined was 100,000 units. The sales volume variance related to the contribution margin of product X is:Explanation / Answer
Answer:
1
The contribution margin sales volume variance for Product X is: = $14,800 favorable
Working
Budgeted units:
$286,000/$110
= 2,600
Actual units: = 3,000 (given)
Budgeted unit CM = $96,200/2,600
= $37
The contribution margin sales volume variance for Product X is:
=(3,000 - 2,600) x $37
= $14,800 favorable
_________________________________________
2
The sales mix variance for Product X is: = $22,200 favorable
Working
Total units:
budget = 13,000;
actual units = 12,000
Sales mix,
budgeted: 2,600/13,000 = 20%;
actual: 3,000/12,000 = 25%
The sales mix variance for Product X is:
= (.25 - .20) x 12,000 x $37
= $22,200 favorable
______________________________________________
3
The sales quantity variance for Product X is= $7,400 unfavorable
Working
Total units: budget = 13,000;
actual units = 12,000
Budgeted sales mix = 2,600/13,000 = .20
(12,000 - 13,000) x .20 x $37
= $7,400 unfavorable
___________________________________________
4
The sales mix variance for Product Y is: $17,400 unfavorable.
Working
Total units: budget = 13,000; actual units = 12,000
Sales mix, budgeted: 10,400/13,000 = 80%; actual: 9,000/12,000 = 75%
(.75 - .80) x 12,000 x $29
= $17,400 unfavorable
__________________________________________
5
The sales quantity variance for Product Y is:= $23,200 unfavorable.
Working
Total units: budget = 13,000; actual units = 12,000
Budgeted sales mix = 10,400/13,000 = 80%
(12,000 - 13,000) x .80 x $29
= $23,200 unfavorable
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