1. Coronado is the primary provider of spirit apparel for many high schools. Management has been evaluating two of its key products forchanges in selling price and sales volume in comparison to expectation: the quarter-zip jacket and the hooded sweatshirt. Coronado'sexpectations and actual results were as follows.Quarter-zipSweatshirtBudgeted SalesVolumeSales price variance490Sales activity variance $tA630Actual SalesVolume550570BudgetedSelling Price$44$47ActualSelling Price$46$45How much was Coronado's sales price variance this year? How much was its comprehensive sales activity variance?Budgeted VariableUnit Cost$25$27

Sale variance is the amount of difference that exists between the budgeted amount of sales and the…

Answered: How much was Coronado's sales price…

How much was Coronado's sales price variance this year? How much was its comprehensive sales activity variance? Sales price variance $ Sales activity variance $

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter12: Activity-based Management

Section: Chapter Questions

Problem 5CE: Uchdorf Manufacturing just completed a study of its purchasing activity with the objective of...

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Lowell Manufacturing Inc. has a normal selling price of 20 per unit and has been selling 125,000 units per month. In November, Lowell Manufacturing decided to lower its price to 19 per unit expecting it can increase the units sold by 16%. a. Compute the normal revenue with a 20 selling price. b. Compute the planned revenue with a 19 selling price. c. Compute the actual revenue for November, assuming 135,000 units were sold in November at 19 per unit. d. Compute the revenue price variance, assuming 135,000 units were sold in November at 19 per unit. e. Compute the revenue volume variance, assuming 135,000 units were sold in November at 19 per unit. f. Analyze and interpret the lowering of the price to 19.
CT Co uses a standard absorption costing system and manufactures and sells a single product called the DG. The standards cost and selling price details for the DG are as follows. $ per unit Variable cost 12 Fixed cost 4 16 Standard profit 6 Standard selling price 22 The sales volume variance reported in June was $12,000 adverse. CT Co is considering using standard marginal costing as the basis for variance reporting in the future. (a) Calculate the sales volume variance that would be shown in a marginal costing operating statement for June.
Scandia Scandia produces a product with three different levels of quality (deluxe, standard and basic). The budget for October showed the following; Deluxe Standard Basic Selling price (£) 10 6 4 Variable costs (£) 5 4 3 Sales volume 3,000 6,000 1,000 Actual results were: Deluxe Standard Basic Selling price (£) 9 7 4 Variable costs (£) 5 4 3 Sales volume 4,000 6,500 500 Calculate the individual sales price variances and sales volume variances and then split the volume variances into a sales mix and quantity variance.
John Cush is a producer of knitted cricket jumpers. His most popular selling line is called the 'Billy Jean' and due to England's recent cricket success he has benefitted from an increase in sales in this product. After a successful year in terms of sales he has been informed by his accountant that he has made a loss. He has asked the accountant to investigate the variances as a matter of urgency.The budget for the previous year was as follows:Selling price per jumper - £70Material to produce one jumper - 3 metres of wool at £7 per metre.Labour to produce one jumper - 2 hours at £15 per hourVariable overheads - £3 per direct labour hour.Fixed overheads budget was £15,000The budget was to produce and sell 2,000 jumpers in the year.The actual information for the year is as follows:Production of jumpers totalled 3,000 units and all were sold for £216,000. Purchases of wool totalled 10,500 metres costing £84,000.A total of 7,500 hours of labour was worked, costing £112,500. Variable…
John Cush is a producer of knitted cricket jumpers. His most popular selling line is called the 'Billy Jean’ and due to England's recent cricket success he has benefitted from an increase in sales in this product. After a successful year in terms of sales he has been informed by his accountant that he has made a loss. He has asked the accountant to investigate the variances as a matter of urgency. The budget for the previous year was as follows: Selling price per jumper - £70Material to produce one jumper – 3 metres of wool at £7 per metre. Labour to produce one jumper – 2 hours at £15 per hourVariable overheads - £3 per direct labour hour.Fixed overheads budget was £15,000The budget was to produce and sell 2,000 jumpers in the year. The actual information for the year is as follows: Production of jumpers totalled 3,000 units and all were sold for £216,000. Purchases of wool totalled 10,500 metres costing £84,000.A total of 7,500 hours of labour was worked, costing £112,500.Variable…
John Cush is a producer of knitted cricket jumpers. His most popular selling line is calledthe 'Billy Jean’ and due to England's recent cricket success he has benefitted from anincrease in sales in this product. After a successful year in terms of sales he has beeninformed by his accountant that he has made a loss. He has asked the accountant toinvestigate the variances as a matter of urgency.The budget for the previous year was as follows:Selling price per jumper - £70Material to produce one jumper – 3 metres of wool at £7 per metre.Labour to produce one jumper – 2 hours at £15 per hourVariable overheads - £3 per direct labour hour.Fixed overheads budget was £15,000The budget was to produce and sell 2,000 jumpers in the year.The actual information for the year is as follows:Production of jumpers totalled 3,000 units and all were sold for £216,000.Purchases of wool totalled 10,500 metres costing £84,000.A total of 7,500 hours of labour was worked, costing £112,500.Variable overheads…
his year’s total sales of Bulldogs Inc. is P4,600,000. The following variances are determined:· Sales Price Variance – 750,000 favorable· Cost Price Variance – 100,000 unfavorable· Sales Volume Variance – 150,000 unfavorableUsing horizontal analysis, determine the percentage change from the prior year total sales to the current year total sales. 20% 10% 25% 15%
This year’s total sales of Bulldogs Inc. is P4,600,000. The following variances are determined:· Sales Price Variance – 750,000 favorable· Cost Price Variance – 100,000 unfavorable· Sales Volume Variance – 150,000 unfavorableUsing horizontal analysis, determine the percentage change from the prior year total sales to the current year total sales. A. 10% B. 15% C. 20% D. 25%
Beagle Clothiers uses a weighted score for the evaluation andselection of its suppliers of trendy fashion garments. Each sup-plier is rated on a 10-point scale (10 = highest) for four differentcriteria: price, quality, delivery, and flexibility (to accommodatechanges in quantity and timing). Because of the volatility ofthe business in which Beagle operates, flexibility is given twicethe weight of each of the other three criteria, which are equallyweighted. The table below shows the scores for three potentialsuppliers for the four performance criteria. Based on the highestweighted score, which supplier should be selected?
Top managers of Cole Industries predicted 2018 sales of 14,600 units of its product at a unit price of $7.00. Actual sales for the year were 14,000 units at $10.50 each. Variable costs were budgeted at $2.60 per unit, and actual variable costs were $2.70 per unit. Actual fixed costs of $43,000 exceeded budgeted fixed costs by $4,500. Prepare Cole's flexible budget performance report. What variance contributed most to the year's favorable results? What caused this variance? Prepare a flexible budget performance report for the year. First, complete the flexible budget performance report through the contribution margin line, then complete the report through the operating income line. Finally, compute the total variances. (Enter a "0" for any zero balances. For any $0 variances, leave the Favorable (F)/Unfavorable (U) input blank.) Cole Industries Flexible Budget Performance Report For the Year Ended December 31, 2018 1 2 3 4 5…
Blank Slate Inc produces two types of tablet computers: a basic version and a high-end version. During January the following data are available: Basic High-end Actual units sold 10,000 40,000 Budgeted sales 8,820 33,180 Actual selling price $700 $900 Budgeted selling price $710 $930 Budgeted market share 25% 24% Actual market share 20% 25% Budget cont. margin /unit $275 $375 Required: Determine the following: a) Sales-mix and sales-quantity variances b) Market-share and market-size variances
Which of the following about gross profit variance analysis is most correct? a. Results of the gross variance analysis should be published at least annually to improve the company’s transparency. b. All of the choices are correct. c. Gross profit variance analysis is a management tool used to track gross profit and improve its performance and profitability in the future. d. A zero-gross profit variance absolutely indicates that the company is able to sell its products at the same price and at the same volume as budgeted or as previous year’s.