Wheat Inc. has an exclusive contract with an exporter. Two brands of wheat are imported, labeled AB and CD. The following data are provided for the current fiscal year: Budgeted Actual Results AB CD AB CD Price per bushel $ 27 $ 12 $ 29 $ 18 Variable cost per bushel $ 22 $ 7 $ 19 $ 14 Sales (in bushels) 2,400 3,000 1,200 4,300
Wheat Inc. has an exclusive contract with an exporter. Two brands of wheat are imported, labeled AB and CD. The following data are provided for the current fiscal year: Budgeted Actual Results AB CD AB CD Price per bushel $ 27 $ 12 $ 29 $ 18 Variable cost per bushel $ 22 $ 7 $ 19 $ 14 Sales (in bushels) 2,400 3,000 1,200 4,300
Cornerstones of Cost Management (Cornerstones Series)
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Author:Don R. Hansen, Maryanne M. Mowen
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Chapter18: Pricing And Profitability Analysis
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Wheat Inc. has an exclusive contract with an exporter. Two brands of wheat are imported, labeled AB and CD. The following data are provided for the current fiscal year:
Budgeted | Actual Results | |||||||||||||||
AB | CD | AB | CD | |||||||||||||
Price per bushel | $ | 27 | $ | 12 | $ | 29 | $ | 18 | ||||||||
Variable cost per bushel | $ | 22 | $ | 7 | $ | 19 | $ | 14 | ||||||||
Sales (in bushels) | 2,400 | 3,000 | 1,200 | 4,300 | ||||||||||||
The total market was estimated to 34,000 bushels at the time of budget. The actual total market for the year is 26,000 bushels.
What is AB's contribution margin sales volume variance?
Multiple Choice
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$6,000 unfavorable.
-
$8,500 favorable.
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$14,500 unfavorable.
-
$0.
-
$12,000 unfavorable.
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