The AF PolyU Company manufactures two modular types of doors: one for the residential market, and the other for the office market. Budgeted and actual operating data for the year 2018 are: Static Budget Total 400,000 $26,000,000 $11,200,000 $37,200,000 Office 140,000 Residential Number of chairs sold 260,000 Contribution margin Actual Results Office 165,600 $22,356,000 $13,248,000 $35,604,000 Residential 248,400 Total 414,000 Number of chairs sold Contribution margin Required: Compute the following variances in terms of contribution margin: a. Compute the total static-budget variance, the total flexible-budget variance, and the total sales-volume variance. b. Compute the sale-mix variance and the sales-quantity variance by type of chair, and in total.

The AF PolyU Company manufactures two modular types of doors: one for the residential market, and the other for the office market. Budgeted and actual operating data for the year 2018 are: Static Budget Total 400,000 $26,000,000 $11,200,000 $37,200,000 Office 140,000 Residential Number of chairs sold 260,000 Contribution margin Actual Results Office 165,600 $22,356,000 $13,248,000 $35,604,000 Residential 248,400 Total 414,000 Number of chairs sold Contribution margin Required: Compute the following variances in terms of contribution margin: a. Compute the total static-budget variance, the total flexible-budget variance, and the total sales-volume variance. b. Compute the sale-mix variance and the sales-quantity variance by type of chair, and in total.

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter9: Evaluating Variances From Standard Costs

Section: Chapter Questions

Problem 3E: Salisbury Bottle Company manufactures plastic two-liter bottles for the beverage industry. The cost...

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