White Mountain Sled Company manufactures children's snow sleds. The company's performance report for November is as follows. Actual Budget Sleds sold 5,000 6,000 $240,000 $300,000 150,000 Sales Variable costs 180,000 Contribution margin $ 90,000 $120,000 Fixed costs 84,000 80,000 Operating income $ 6,000 $ 40,000 The company uses sales variance analysis to explain the difference between budgeted and actual sales revenue. Required: Compute the following variances and indicate whether each is favorable or unfavorable. (Select "None" for no effect (i.e., zero variance).) 1. November sales-price variance 2. November sales-volume variance
White Mountain Sled Company manufactures children's snow sleds. The company's performance report for November is as follows. Actual Budget Sleds sold 5,000 6,000 $240,000 $300,000 150,000 Sales Variable costs 180,000 Contribution margin $ 90,000 $120,000 Fixed costs 84,000 80,000 Operating income $ 6,000 $ 40,000 The company uses sales variance analysis to explain the difference between budgeted and actual sales revenue. Required: Compute the following variances and indicate whether each is favorable or unfavorable. (Select "None" for no effect (i.e., zero variance).) 1. November sales-price variance 2. November sales-volume variance
Chapter8: Standard Costs And Variances
Section: Chapter Questions
Problem 11EB: Fitzgerald Company manufactures sewing machines, and they produced 2,500 this past month. The...
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