Managerial Accounting Sales Variance Question. Hi! Any help with this would be a

Question

Managerial Accounting Sales Variance Question.

Hi! Any help with this would be amazing. I believe the picture is pretty self explanatory as far as requirements go.

Homework 325 Corporation sells three products A, B, and C. Operating data for the third quarter are as follows Budgeted 8 Actual BC Total Total 012 3.220 4,968 9.200 ,358 3,589 4,753 9,700 $365 $288 $110 Units sold Selling price Unit variable cost Unit contribution margin $190 $194 $35 Market size $374 $272 $144 $189 $176 $78 40,000 38,800 Required 1. Calculate the selling price variance (for each product and in total) 2. Calculate the contribution margin impact of the following variances a. Sales volume (for each product and in total) b. Sales mix (for each product and in total) c. Sales quantity d. Market share e. Market size

Explanation / Answer

Solution A Actual Standard Variance Reference A B C A B C Total A B C Selling price                  365                  288             110             374             272             144               (9)               16             (34) P= (Actual Selling Price-Standard selling price) Quantities sold Q              1,012              3,220          4,968         9,200          1,358          3,589          4,753         9,700          (346)          (369)             215 V= (Actual Selling Quantity-Standard selling Quantity) Price Variance P                    (9)                    16             (34) Sale Price variance P*Q            (9,108)            51,520 (168,912) Total Price variance       (126,500) Solution B Actual Standard Standard contribution A B C A B C A B C Unit contribution margin S                  190                  194                35             189             176                78             189             176               78 S=Standard contribution will be taken for impact analysis Volume varaince V=Actual sale-Standard sale)                (346)                (369)             215 Volume variance C*V          (65,394)          (64,944)       16,770 Total       (113,568) Sale Mix standard 9200*1358/9700 9200*3589/9700 9200*4753/9700 Sale Mix standard 1288 3404 4508 Sale Mix deviation M-Std less actual sale                (276)                (184)             460 Sale Mix variance M*C          (52,164)          (32,384)       35,880 Total          (48,668) Sale quantity deviation SQ-Revised standard less standard                  (70)                (185)           (245) Sale quantity Variance SQ*C          (13,230)          (32,560)     (19,110) Total          (64,900) Actual Standard Market size 40000            38,800 Units sold 9200              9,700 Share 23.00% 25.00% Standard Contribution              189                  176                    78 Standard Quantity          1,358              3,589              4,753 Standard total contribution      256,662          631,664          370,734 Per unit 1259060/9700 Per unit              130 Market size variance =(40000-38800)*25%*130        39,000 Market Share variance =40000*(23%-25%)*130 (104,000)

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