Textbook Exercise 14-27: Variance analysis, multiple products.Textbook Exercise 14-28: Market-share and market-size variances (continuation of 14-27). 14-28 Market-share and market-size variances (continuation of 14-27). Soda-King prepared the budostfor 2017 assuming a 12.5% market share based on totai sales in the western region of the Australia. The toisoft drinks market was estimated to reach sales of 10 million cartons in the region. However, actual total salasvolume in the western region was 12.3 million cartons. Čalculate the market-share and market-size variancfor Soda-King in 2017. (Calculate all variances in terms of contribution margin.) Comment on the results (4-27/ Variance analysis, multipte products. Soda-King manufactures and sells two soft drinks: Kola andLimor, Budgeted and actual results for 2017 are as follows:Budget for 2017Actual for 2017Variable CostÇartonsSellingPriceSellingPriceVariable CostCartonsper Carton$5.75Productper Carton$5.50SoldSoldKolo$10.10$ 7.75$10.00500,000504,300Limor$ 7.50$4.00750,000$3.70725,7001. Compute the total sales-volume variance, the total sales-mix variance, and the total sales-quantityvariance. (Calculate all variances in terms of contribution margin.) Show results for each product inyour computations.2 What inferences can you draw from the variances computed in requirement 1?Required

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Description: Textbook Exercise 14-27: Variance analysis, multiple products.Textbook Exercise 14-28: Market-share and market-size variances (continuation of 14-27). 14-28 Market-share and market-size variances (continuation of 14-27). Soda-King prepared the budost

Variances is the deviation from actual results of the standard or budgeted results. Higher variances…

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4-27 Variance analysis, multiple products. Soda-King manufactures and sells two soft drinks: Kola and Limor. Budgeted and actual results for 2017 are as follows: Budget for 2017 Actual for 2017 Variable Cost Cartons Selling Price Selling Price Variable Cost Cartons Sold per Carton $5.75 $3.70 Product per Carton $5.50 Sold Kolo Limor $10.00 500,000 $10.10 504,300 $ 7.50 $4.00 750,000 $ 7.75 725,700 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. 2 What inferences can you draw from the variances computed in requirement 1? Required

4-27 Variance analysis, multiple products. Soda-King manufactures and sells two soft drinks: Kola and Limor. Budgeted and actual results for 2017 are as follows: Budget for 2017 Actual for 2017 Variable Cost Cartons Selling Price Selling Price Variable Cost Cartons Sold per Carton $5.75 $3.70 Product per Carton $5.50 Sold Kolo Limor $10.00 500,000 $10.10 504,300 $ 7.50 $4.00 750,000 $ 7.75 725,700 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. 2 What inferences can you draw from the variances computed in requirement 1? Required

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Concept explainers

Variance Analysis

In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.

Standard Costing

The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.

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Textbook Exercise 14-27: Variance analysis, multiple products.

Textbook Exercise 14-28: Market-share and market-size variances (continuation of 14-27).

14-28 Market-share and market-size variances (continuation of 14-27). Soda-King prepared the budost
for 2017 assuming a 12.5% market share based on totai sales in the western region of the Australia. The toi
soft drinks market was estimated to reach sales of 10 million cartons in the region. However, actual total salas
volume in the western region was 12.3 million cartons. Čalculate the market-share and market-size varianc
for Soda-King in 2017. (Calculate all variances in terms of contribution margin.) Comment on the results

(4-27/ Variance analysis, multipte products. Soda-King manufactures and sells two soft drinks: Kola and
Limor, Budgeted and actual results for 2017 are as follows:
Budget for 2017
Actual for 2017
Variable Cost
Çartons
Selling
Price
Selling
Price
Variable Cost
Cartons
per Carton
$5.75
Product
per Carton
$5.50
Sold
Sold
Kolo
$10.10
$ 7.75
$10.00
500,000
504,300
Limor
$ 7.50
$4.00
750,000
$3.70
725,700
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.
2 What inferences can you draw from the variances computed in requirement 1?
Required

Definition Definition Analysis of a difference between planned and actual behavior. After analyzing differences, companies find the reasons for variance so that the necessary steps should be taken to correct that variance.

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