How can the sales-quantity variance be decomposed further? (Select all that apply.) A. The sales-quantity variance...
How can the sales-quantity variance be decomposed further? (Select all that apply.)
A.
The sales-quantity variance can be decomposed into a market-size variance (which arises when the actual total market size in units is different from the budgeted market size in units).
B.
The sales-quantity variance can be decomposed into a sales-mix variance (which arises when the actual number of units sold is different from budgeted units of all products to be sold).
C.
The sales-quantity variance can be decomposed into a direct materials mix variance (which arises when the actual cost of direct materials is different from budgeted cost of direct materials).
D.
The sales-quantity variance can be decomposed into a market share variance (which arises when the actual market share of a company is different from its budgeted market share).
Homework Answers
| The sales-quantity variance can be decomposed into a market-size variance (which arises when the actual total market size in units is different from the budgeted market size in units). |
| The sales-quantity variance can be decomposed into a market share variance (which arises when the actual market share of a company is different from its budgeted market share). |
| Option A and D is correct |
Add Answer to:
How can the sales-quantity variance be decomposed further?
(Select all that apply.)
A.
The sales-quantity variance...
Calculate the sales mix variance, the sales quantity variance and the sales volume variance for each...
Calculate the sales mix variance, the sales
quantity variance and the sales volume variance for each product
and in total for the month of December 2019.
BCF forecasts a 25% market share of total 1kg blocks of chocolate sold in Otago in December 2019 in Springfield. Reliable industry sources indicate that the total number of 1kg blocks of chocolate sold for December 2019 in Otago was 12.5% higher than budgeted. Exhibit 1 Budgeted and actual data for December 2019 Budgeted...
Sales Volume Variance can be calculated as: ( Market Size Variance plus Market Share Variance Budgeted...
Sales Volume Variance can be calculated as: ( Market Size Variance plus Market Share Variance Budgeted Contribution Margin x | Actual Quantity of Output - Budgeted Quantity of Output The difference between the Operating Income of the Static Budget and Flexible Budget The difference between the Total Contribution Margin of the Static Budget and the Flexible Budget CD All of the above
EXERCISE 3: Flexible budget variances can be further analyzed to determine whether the variance was due...
EXERCISE 3: Flexible budget variances can be further analyzed to determine whether the variance was due to an unexpected fluctuation in price or usage. Use the following data to determine a price and usage variance for Direct Materials: Budget (Std) Actual Price-Direct Materials per gallon $1.475 $2.00 10 ga lons 8 galans Materials Used per unit (barrel) DM Cost per unit (barrel) X $14.75 $16.00 How many gallons per unit did Bettis originally plan for in its budget (standard)? 8...
Which of the following statements is not correct? a. The sales mix variance measure the impact...
Which of the following statements is not correct? a. The sales mix variance measure the impact of substitution. b. The sales quantity variance measures the variance in sales quantity, holding the sales mix constant. c. The sales activity variance can be divided into two components: sales mix and market share. d. A sales mix variance provides useful information for a company that sells multiple products.
24. Standard costing can be used to apply costs for which of the following? Select one...
24. Standard costing can be used to apply costs for which of the following? Select one Direct Materials b. Direct Labor Indirect Materials and Indirect Labor c d. Factory Utilities All of the above can be applied using standard costing a. Tab e 25. Reasons for using standard costing include their usefulness in: Select one: Caps L a. Preparing flexible budgets b. Preparing master budgets c Establishing selling prices d. Preparing performance reports e All of the above Shift 1...
The sales-mix variance will be unfavorable when which of the following occurs? A) the actual sales...
The sales-mix variance will be unfavorable when which of the following occurs? A) the actual sales mix shifts toward the less profitable units B) the contribution margin per composite unit for the actual mix is greater than the budgeted mix C) the actual unit sales are less than the budgeted unit sales D) the actual contribution margin is less than the static-budget contribution margin
Bazinga Ltd. makes 2 products, Aces and Bells. Data for the most recent year is as follows:...
Bazinga Ltd. makes 2 products, Aces and Bells. Data for the most recent year is as follows: Budget Data Product Selling price per unit Variable cost per unit CM per unit Sales volume in units Sales mix (based on units) Total Contribution Margin Aces 10.00 2.00 8.00 123,000 61.50% 984,000 Bells 15.00 10.00 5.00 77,000 38.50% 385,000 200,000 1,369,000 Actual Data Product Selling price per unit Variable cost per unit CM per unit Sales volume in units Sales mix (based on...
Bazinga Ltd. makes 2 products, Aces and Bells. Data for the most recent year is as...
Bazinga Ltd. makes 2 products, Aces and Bells. Data for the most recent year is as follows: Budget Data Product Selling price per unit Variable cost per unit CM per unit Sales volume in units Sales mix (based on units) Total Contribution Margin Aces 10.00 2.00 8.00 123,000 61.50% 984,000 Bells 15.00 10.00 5.00 77,000 38.50% 385,000 200,000 1,369,000 Actual Data Product Selling price per unit Variable cost per...
A favorable sales quantity variance indicates that the marking manager has done a good job. Do...
A favorable sales quantity variance indicates that the marking manager has done a good job. Do you agree? Can you give an example in which a market size variance or market share variance is opposite to that of the sales quantity variance?
Clean-It-Up manufactures industrial dryers and washers. The following information is available for February: Dryers washers Budgeted...
Clean-It-Up manufactures industrial dryers and washers. The following information is available for February: Dryers washers Budgeted units sold 10,000 40,000 Actual sales (in units) 8,820 33,180 Actual selling price per unit $700 $900 Budgeted selling price per unit $710 $930 Budgeted market share 20% 25% Actual market share 25% 24% Budget cont. margin /unit $275 $375 REQUIRED: a) Determine the sales-mix and sales-quantity variances. (6 marks) b) Determine the market-share and market-size variances. (6 marks) c) Discuss the potential causes...
Calculate the sales mix variance, the sales
quantity variance and the sales volume variance for each product
and in total for the month of December 2019.
BCF forecasts a 25% market share of total 1kg blocks of chocolate sold in Otago in December 2019 in Springfield. Reliable industry sources indicate that the total number of 1kg blocks of chocolate sold for December 2019 in Otago was 12.5% higher than budgeted. Exhibit 1 Budgeted and actual data for December 2019 Budgeted...
Sales Volume Variance can be calculated as: ( Market Size Variance plus Market Share Variance Budgeted Contribution Margin x | Actual Quantity of Output - Budgeted Quantity of Output The difference between the Operating Income of the Static Budget and Flexible Budget The difference between the Total Contribution Margin of the Static Budget and the Flexible Budget CD All of the above
EXERCISE 3: Flexible budget variances can be further analyzed to determine whether the variance was due to an unexpected fluctuation in price or usage. Use the following data to determine a price and usage variance for Direct Materials: Budget (Std) Actual Price-Direct Materials per gallon $1.475 $2.00 10 ga lons 8 galans Materials Used per unit (barrel) DM Cost per unit (barrel) X $14.75 $16.00 How many gallons per unit did Bettis originally plan for in its budget (standard)? 8...
24. Standard costing can be used to apply costs for which of the following? Select one Direct Materials b. Direct Labor Indirect Materials and Indirect Labor c d. Factory Utilities All of the above can be applied using standard costing a. Tab e 25. Reasons for using standard costing include their usefulness in: Select one: Caps L a. Preparing flexible budgets b. Preparing master budgets c Establishing selling prices d. Preparing performance reports e All of the above Shift 1...
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