How can the concept of a composite unit be used to explain why an unfavorable total...
How can the concept of a composite unit be used to explain why an unfavorable total sales-mix variance of contribution margin occurs?
Homework Answers
Answer:
The total sales-mix variance arises from differences in the budgeted contribution margin of the actual and budgeted sales mix. The composite unit theory allows the effect of individual product changes to be précised in a single innate number by using weights based on the mix of individual units in the actual and budgeted mix of products sold.
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How can the concept of a composite unit be used to explain why
an unfavorable total...
How can the concept of a composite unit be used to explain why an unfavorable total...
How can the concept of a composite unit be used to explain why an unfavorable total sales-mix variance of contribution margin occurs?
How can the concept of a composite unit be used to explain why an unfavorable total...
How can the concept of a composite unit be used to explain why an unfavorable total sales-mix variance of contribution margin occurs?
The sales-mix variance will be unfavorable when which of the following occurs? A) the actual sales...
The sales-mix variance will be unfavorable when which of the following occurs? A) the actual sales mix shifts toward the less profitable units B) the contribution margin per composite unit for the actual mix is greater than the budgeted mix C) the actual unit sales are less than the budgeted unit sales D) the actual contribution margin is less than the static-budget contribution margin
3.The following information is for Eucha Corp. for the first quarter of the current fiscal year:...
3.The following information is for Eucha Corp. for the first quarter of the current fiscal year: Actual Results Static Budget Unit sales: Product X 15,000 40,000 Product Y 65,000 60,000 Total 80,000 100,000 Contribution margin per unit: Product X $4 $5 Product Y $3 $2 The sales-mix variance for both products together is: a. $51,000 unfavorable. b. $64,000 unfavorahle Product X $4 $5 Product Y $3 $2 The sales-mix variance for both products together is a. $51,000 unfavorable. b. $64,000...
Can you please explain why it favorable and unfavorable. thank you. P 9-A Variance Analysis (In...
Can
you please explain why it favorable and unfavorable. thank
you.
P 9-A Variance Analysis (In Class) Pear Company is a manufacturing firm that specializes in the production of a single product. Overhead is applied based on direct labor hours. Standard Cost Card (budget for one unit) The standard cost card shows the manager what the final manufactured cost should be for the company's product. Standard Standard Quantity Price Standard or Hours or Rate Cost Direct Materials 3.5 feet х...
Explain the chassis cell concept, and how it can be used to expand the utility of...
Explain the chassis cell concept, and how it can be used to expand the utility of Saccharomyces cerevisiae in the biotechnology sector.
Problem 10 (10 points) The Sarasota Corporation manufactures two types of vacuum cleaners, the Victor for nmercial b...
Problem 10 (10 points) The Sarasota Corporation manufactures two types of vacuum cleaners, the Victor for nmercial building use and the House-Mate for residences. Budgeted and actual operating data for the year 2012 were as follows Static Budget Number sold Contribution margin Total House Mate 20,000 $3,000,000 $4,500,000 Victor 25,000 5,000 $1,500,000 Actual Results umber sold Contribution margin Victor Total 32,000 $3,920,000 $5,200,000 House-Mate 4,000 $1,280,000 What is the contribution margin for the flexible budget? A) $1,200,000 B) $4,200,000 C)...
Done The products often have different unit variable costs. Thus, the total profit and the breake...
number 6
Done The products often have different unit variable costs. Thus, the total profit and the breakeven point depend on the proportions in which the products are sold. Sales mix is the relative contribution of sales among various products sold by a firm. Assume that the sales of Jordan, Inc, for a typical year are as follows Units Sold Sales Mix 18,000 20 Total Assume the following unit selling prices and unit variable costs Product Selling Price per UiVariable...
Elsworth Inc. manufactures and sells two fruit drinks: Kostor and Limba. Budgeted and actual results for...
Elsworth Inc. manufactures and sells two fruit drinks: Kostor and Limba. Budgeted and actual results for 2017 are as follows: (Click the icon to view the budgeted and actual results.) Read the requirements Requirement 1. Compute the total sales volume variance, the total sales-mix variance, and the total sales-quantity variance (Calculate all variances in terms of contribution margin.) Show results for each product in your computations, Begin by completing the following table to determine the budgeted contribution margin per unit,...
Exercise 5-22 CVP analysis using composite units LO P4 Handy Home sells windows and doors in...
Exercise 5-22 CVP analysis using composite units LO P4 Handy Home sells windows and doors in the ratio of 8:2 (windows:doors). The selling price of each window is $120 and of each door is S270. The variable cost of a window is S72.50 and of a door is $185.00. Fixed costs are S275,000. (Enter your "per unit" values in two decimal places.) Answer is not complete. unit. Selling Price per u nit Total per composite unit Windows Doors Determine the...
3.The following information is for Eucha Corp. for the first quarter of the current fiscal year: Actual Results Static Budget Unit sales: Product X 15,000 40,000 Product Y 65,000 60,000 Total 80,000 100,000 Contribution margin per unit: Product X $4 $5 Product Y $3 $2 The sales-mix variance for both products together is: a. $51,000 unfavorable. b. $64,000 unfavorahle Product X $4 $5 Product Y $3 $2 The sales-mix variance for both products together is a. $51,000 unfavorable. b. $64,000...
Can
you please explain why it favorable and unfavorable. thank
you.
P 9-A Variance Analysis (In Class) Pear Company is a manufacturing firm that specializes in the production of a single product. Overhead is applied based on direct labor hours. Standard Cost Card (budget for one unit) The standard cost card shows the manager what the final manufactured cost should be for the company's product. Standard Standard Quantity Price Standard or Hours or Rate Cost Direct Materials 3.5 feet х...
Problem 10 (10 points) The Sarasota Corporation manufactures two types of vacuum cleaners, the Victor for nmercial building use and the House-Mate for residences. Budgeted and actual operating data for the year 2012 were as follows Static Budget Number sold Contribution margin Total House Mate 20,000 $3,000,000 $4,500,000 Victor 25,000 5,000 $1,500,000 Actual Results umber sold Contribution margin Victor Total 32,000 $3,920,000 $5,200,000 House-Mate 4,000 $1,280,000 What is the contribution margin for the flexible budget? A) $1,200,000 B) $4,200,000 C)...
number 6
Done The products often have different unit variable costs. Thus, the total profit and the breakeven point depend on the proportions in which the products are sold. Sales mix is the relative contribution of sales among various products sold by a firm. Assume that the sales of Jordan, Inc, for a typical year are as follows Units Sold Sales Mix 18,000 20 Total Assume the following unit selling prices and unit variable costs Product Selling Price per UiVariable...
Elsworth Inc. manufactures and sells two fruit drinks: Kostor and Limba. Budgeted and actual results for 2017 are as follows: (Click the icon to view the budgeted and actual results.) Read the requirements Requirement 1. Compute the total sales volume variance, the total sales-mix variance, and the total sales-quantity variance (Calculate all variances in terms of contribution margin.) Show results for each product in your computations, Begin by completing the following table to determine the budgeted contribution margin per unit,...
Exercise 5-22 CVP analysis using composite units LO P4 Handy Home sells windows and doors in the ratio of 8:2 (windows:doors). The selling price of each window is $120 and of each door is S270. The variable cost of a window is S72.50 and of a door is $185.00. Fixed costs are S275,000. (Enter your "per unit" values in two decimal places.) Answer is not complete. unit. Selling Price per u nit Total per composite unit Windows Doors Determine the...
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