1.
Prepare a flexible-
1.
![Check Mark](/static/check-mark.png)
Explanation of Solution
Prepare a flexible-budget contribution income statement for Qtr. 2, showing the Qtr. 2 results, the Qtr. 1 results, and the flexible budget:
Table (1)
2.
Calculate the sales volume variance for each product based both on sales dollars and contribution margin.
2.
![Check Mark](/static/check-mark.png)
Explanation of Solution
Calculate the sales volume variance for each product based both on sales dollars and contribution margin:
In sales Dollars:
Product S:
Product M:
In Contribution Margin:
Product S:
Product M:
3.
Compute the sales mix variance, and the sales quantity variance for each product, based on contribution margin.
3.
![Check Mark](/static/check-mark.png)
Explanation of Solution
Compute the sales mix variance, and the sales quantity variance for each product, based on contribution margin:
Sales Mix Variance:
Product S:
Product M:
Sales Quantity Variance:
Product S:
Product M:
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Chapter 16 Solutions
COST MANAGEMENT: STRATEGIC W/CONNECT
- AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
- Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSONIntermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill EducationFinancial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education
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