BuyFindarrow_forward

Cornerstones of Cost Management (C...

4th Edition
Don R. Hansen + 1 other
Publisher: Cengage Learning
ISBN: 9781305970663

Solutions

Chapter
Section
BuyFindarrow_forward

Cornerstones of Cost Management (C...

4th Edition
Don R. Hansen + 1 other
Publisher: Cengage Learning
ISBN: 9781305970663
Chapter 18, Problem 32P
Textbook Problem
21 views

Sulert, Inc., produces and sells gel-filled ice packs. Sulert’s performance report for April follows:

Chapter 18, Problem 32P, Sulert, Inc., produces and sells gel-filled ice packs. Sulerts performance report for April follows:

Required:

  1. 1. Calculate the contribution margin variance and the contribution margin volume variance.
  2. 2. Calculate the market share variance and the market size variance. (CMA adapted)

1.

To determine

Determine the contribution margin variance, and contribution margin volume variance.

Explanation of Solution

Contribution margin variance: Contribution margin variance reflects difference between the actual contribution margin and budgeted contribution margin. It is computed using the given formula:

Contribution margin variance=(Actual contribution margin)(Budgeted contribution margin)

Contribution margin volume variance: Contribution margin volume variance reflects difference between the actual quantity sold and the budgeted quantity sold multiplied by the budgeted average unit contribution margin. It is computed using the given formula:

Contribution margin volume variance}=[(Actual quantity sold)(Budgeted quantity sold)×(Budgeted average unit contribution margin)]

Compute the contribution margin variance.

Contribution margin variance=(Actual contribution margin)(Budgeted contribution margin)=$797,500$878,700=$81,200 Unfavorable

Since, the budgeted contribution margin is more than the actual contribution margin; the contribution margin variance of $81,200 is unfavorable (U)

2.

To determine

Compute market share variance and market size variance.

Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution

The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started

Chapter 18 Solutions

Cornerstones of Cost Management (Cornerstones Series)
Show all chapter solutions
add
Ch. 18 - How does absorption costing differ from variable...Ch. 18 - What are some advantages and disadvantages of...Ch. 18 - Why do some firms measure customer profitability?...Ch. 18 - What variances do managers use in trying to...Ch. 18 - Describe the product life cycle. How do unit-level...Ch. 18 - Ventana Window and Wall Treatments Company...Ch. 18 - Kaune Food Products Company manufactures canned...Ch. 18 - Pattison Products, Inc., began operations in...Ch. 18 - Refer to Cornerstone Exercise 18.3. Required: 1....Ch. 18 - Saginaw Company is a garden products wholesale...Ch. 18 - Iliff, Inc., produces and sells two types of...Ch. 18 - Iliff, Inc., produces and sells two types of...Ch. 18 - Refer to Cornerstone Exercise 18.6. Required: 1....Ch. 18 - Budgeted unit sales for the entire countertop oven...Ch. 18 - Janet Gordon and Phil Hopkins graduated several...Ch. 18 - Amy Chang wants to start a business supplying...Ch. 18 - Foster Hancock is an accountant just ready to open...Ch. 18 - Arthur Quillen Construction Company is a general...Ch. 18 - Many different businesses employ markup on cost to...Ch. 18 - Flaherty, Inc., has just completed its first year...Ch. 18 - During its first year of operations, Snobegon,...Ch. 18 - Carina Franks operates a catering company in...Ch. 18 - Otero Fibers, Inc., specializes in the manufacture...Ch. 18 - Data for Torleson Company are as follows:...Ch. 18 - Eastman, Inc., manufactures and sells three...Ch. 18 - Which of the following markets is characterized by...Ch. 18 - The following information pertains to three...Ch. 18 - Thebes Company had the following information: What...Ch. 18 - Banwood Company has the following information for...Ch. 18 - Jasmine Companys expected sales were 2,000 units...Ch. 18 - Jorell, Inc., manufactures and distributes a...Ch. 18 - Snyder Company produced 90,000 units during its...Ch. 18 - The following information pertains to Vladamir,...Ch. 18 - Jellison Company had the following operating data...Ch. 18 - San Mateo Optics, Inc., specializes in...Ch. 18 - Haysbert Company provides management services for...Ch. 18 - Sulert, Inc., produces and sells gel-filled ice...Ch. 18 - Gasconia Company produces three models of a...Ch. 18 - Dana Baird was manager of a new Medical Supplies...Ch. 18 - Bill Fremont, division controller and CMA, was...Ch. 18 - Dantrell Palmer has just been appointed manager of...Ch. 18 - Alydar, Inc., manufactures and sells automotive...Ch. 18 - Porter Insurance Company has three lines of...Ch. 18 - Porter Insurance Company has three lines of...Ch. 18 - Olin Company manufactures and distributes...Ch. 18 - Shannon, Inc., has two divisions. One produces and...Ch. 18 - Pittsburgh-Walsh Company (PWC) is a manufacturing...

Additional Business Textbook Solutions

Find more solutions based on key concepts
Show solutions add
What is the difference between a cash discount and a trade discount?

College Accounting (Book Only): A Career Approach

Describe an employee self-service system.

Accounting Information Systems

What is network virtualization?

Accounting Information Systems

Financial ratio analysis is conducted by three main groups of analysts: credit analysts, stock analysts, and ma...

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)