Budgeted Units Budgeted Sales Actual Units Actual Sales Power Lex 500 Ota Gas Sipper $10,000,000 $ 4,000,000 $8,000,000 $4,000,000 200 150 200 250 The budgeted contribution margin is 20% for both vehicle types. Which of the following statements is true concerning the sales variances for Lexota, Inc. for September, Year 2? a. The sales-volume variance for the company is favorable. b. The sales-quantity variance for the company is unfavorable. c. The budgeted variable cost for each vehicle type is the same. d. The sales-mix variance for the company is unfavorable.
Budgeted Units Budgeted Sales Actual Units Actual Sales Power Lex 500 Ota Gas Sipper $10,000,000 $ 4,000,000 $8,000,000 $4,000,000 200 150 200 250 The budgeted contribution margin is 20% for both vehicle types. Which of the following statements is true concerning the sales variances for Lexota, Inc. for September, Year 2? a. The sales-volume variance for the company is favorable. b. The sales-quantity variance for the company is unfavorable. c. The budgeted variable cost for each vehicle type is the same. d. The sales-mix variance for the company is unfavorable.
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Chapter18: Pricing And Profitability Analysis
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Problem 9CE: Budgeted unit sales for the entire countertop oven industry were 2,500,000 (of all model types), and...
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Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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Question
Sales-volume, sales-mix, and sales-quantity variance. Lexota, Inc., an auto manufacturer, reported the following budgeted and actual sales of its vehicles during September, Year 2:
Transcribed Image Text:Budgeted Units
Budgeted Sales
Actual Units
Actual Sales
Power Lex 500
Ota Gas Sipper
$10,000,000
$ 4,000,000
$8,000,000
$4,000,000
200
150
200
250
The budgeted contribution margin is 20% for both vehicle types. Which of the following statements is true
concerning the sales variances for Lexota, Inc. for September, Year 2?
a. The sales-volume variance for the company is favorable.
b. The sales-quantity variance for the company is unfavorable.
c. The budgeted variable cost for each vehicle type is the same.
d. The sales-mix variance for the company is unfavorable.
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