II. SALES VARIANCE ANALYSISThe Furniluxe manufactures two types of study desk: one for the residential market, and the other forthe school market. Budgeted and actual operating data for the year 2022 are:Static BudgetNumber of desk soldContribution marginResidentialSchool390,000$39,000,000210,000$16,800,000Total600,000$55,800,000SchoolTotal580,000$48,720,000Actual ResultsResidentialNumber of desk soldContribution margin232,000348,000$20,880,000$27,840,000The Furnilixe prepared the budget for 2022 assuming a 15% market share based on total desk sales inthe region. The total desk market was estimated to reach sales of 4,000,000 desks. However, actualtotal sales volume was 3,625,000 desks.Required:Compute the following variances in terms of contribution margin:1. Compute the total sales-volume variance. (3%)2. Compute the sales-mix variance and the sales-quantity variance by type of desk. (7%)3. Compute the market share variance and the market size variance. (5%)4. Provide possible explanation on the result! (5%)

Furniluxe manufactures two types of study desks - one for the residential market other for the…

Required: Compute the following variances in terms of contribution margin: 1. Compute the total sales-volume variance. (3%) 2. Compute the sales-mix variance and the sales-quantity variance by type of desk. (7%)

Required: Compute the following variances in terms of contribution margin: 1. Compute the total sales-volume variance. (3%) 2. Compute the sales-mix variance and the sales-quantity variance by type of desk. (7%)

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter18: Pricing And Profitability Analysis

Section: Chapter Questions

Problem 9CE: Budgeted unit sales for the entire countertop oven industry were 2,500,000 (of all model types), and...

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Flexible budgeting and variance analysis Im Really Cold Coat Company makes womens and mens coats. Both products require filler and lining material. The following planning information has been made available: Im Really Cold Coat Company does not expect there to be any beginning or ending inventories of filler and lining material. At the end of the budget year, Im Really Cold Coat Company experienced the following actual results: The expected beginning inventory and desired ending inventory were realized. Instructions 1. Prepare the following variance analyses for both coats and the total, based on the actual results and production levels at the end of the budget year: A. Direct materials price, quantity, and total variance. B. Direct labor rate, time, and total variance. 2. Why are the standard amounts in part (1) based on the actual production at the end of the year instead of the planned production at the beginning of the year?
Preparing a performance report Use the flexible budget prepared in P7-6 for the 31,000-unit level and the actual operating results listed below for the 31,000-unit level. Required: 1. Prepare a performance report. 2. List the major reasons why the actual operating income at 31,000 units differs from the master budget operating income at 30,000 units in Figure 7-12. 3. Given the level at which the company operated, how was its cost control? Item Direct materials: Direct labor:
Budgeted unit sales for the entire countertop oven industry were 2,500,000 (of all model types), and actual unit sales for the industry were 2,550,000. Recall from Cornerstone Exercise 18.6 that Iliff, Inc., provided the following information: Required: 1. Calculate the market share variance (take percentages out to four significant digits). 2. Calculate the market size variance. 3. What if Iliff actually sold a total of 41,000 units (in total of the two models)? How would that affect the market share variance? The market size variance?
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Titanium Blades refines titanium for use in all brands of razor blades. It prepared a static budget for the sales of 5,000 units. These variances were observed: Determine the static budget and use the information to prepare a flexible budget and analysis for the 6,000 units actually sold.
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