Static-budget total contribution margin Budgeted units to be sold of all glasses Budgeted contribution margin per unit of Plain Budgeted contribution margin per unit of Chic Total sales-quantity variance Actual sales-mix percentage of Plain $15,525 2,300 units $5 per unit $12 per unit $2,700 U 60% All variances are computed in contribution-margin terms. Calculate the sales-quantity variances for each product for June 2017. Calculate the individual-product and total sales-mix variances for June 2017. Calculate the individual- product and total sales-volume variances for June 2017. Briefly describe the conclusions you can draw from the variances. 1. Required 2. 3.

Question

Variance analysis, working backward. The Hiro Corporation sells two brands of wine glasses: Plain and Chic. Hiro provides the following information for sales in the month of June 2017:

Static-budget total contribution margin
Budgeted units to be sold of all glasses
Budgeted contribution margin per unit of Plain
Budgeted contribution margin per unit of Chic
Total sales-quantity variance
Actual sales-mix percentage of Plain
$15,525
2,300 units
$5 per unit
$12 per unit
$2,700 U
60%
All variances are computed in contribution-margin terms.
Calculate the sales-quantity variances for each product for June 2017.
Calculate the individual-product and total sales-mix variances for June 2017. Calculate the individual-
product and total sales-volume variances for June 2017.
Briefly describe the conclusions you can draw from the variances.
1.
Required
2.
3.
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Transcribed Image Text

Static-budget total contribution margin Budgeted units to be sold of all glasses Budgeted contribution margin per unit of Plain Budgeted contribution margin per unit of Chic Total sales-quantity variance Actual sales-mix percentage of Plain $15,525 2,300 units $5 per unit $12 per unit $2,700 U 60% All variances are computed in contribution-margin terms. Calculate the sales-quantity variances for each product for June 2017. Calculate the individual-product and total sales-mix variances for June 2017. Calculate the individual- product and total sales-volume variances for June 2017. Briefly describe the conclusions you can draw from the variances. 1. Required 2. 3.