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

Name: Textbook Exercise 14-27: Variance analysis, multiple products.Textbook
Uploaded: 2024-03-20T06:33:06.000Z
Channel: Bartleby
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…

Business

Accounting

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

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Total variance in variance analysis compares ● Flexible budget and actual outcome Static budget and flexible budget Flexible budget and static outcome Static budget and actual outcome
How can we determine the mean and variance of the NPW on the basis of the three NPW estimates?
Variance analysis is very important because of all of the following reasons except: Select one: a. It helps in gaining an insight into the reason behind the good performance b. It helps in fixing the responsibility c. It acts as a control mechanism. d. It aids into taking an immediate action
1. Please, compute mean returns, variances and covariance among the two assets of the IBEX35 and present the vector of returns and the matrix.
How frequently do you believe that firms should conduct variance analysis? Explain why?
At the beginning of the year, you estimated the following - Production - 75,000 units Raw Material - 270,000 pounds at a cost of $1,026,000 Direct Labor - 187,500 hours at a cost of $4,125,000 Variable Overhead - 135,000 machine hours at a cost of $567,000 Fixed Overhead - $900,000 At the end of year, the actual results were as follows - Production - 73,000 units Raw Material - 265,720 pounds purchased and used at a cost of $1,036,308 Direct Labor - 179,580 hours at a cost of $3,968,718 Variable Overhead - 133,590 machine hours at a cost of $558,406.20 Fixed Overhead - $891,000
What does the concept of ‘management by exception’ mean and what factors are considered when assessing the significance of a variance?
Comment on the statement “A favourable variance is always better than an adverse variance” by considering one behavioural issue involved.
Indicate whether the items below are used as key performance indicators for the areas Quantity variance on a cost report *(A) Financial(B) Customer(C) Internal Process(D) Learning and Growth performance.
Gross profit volume variance is derived by A. combining sales and cost of sales variances. B. combining sales volume and cost volume variances. C. deducting cost price variance from gross profit variance. D. deducting sales price variance from gross profit variance.
Which of the following underlying assumptions form(s) the basis for gross profit variance analysis? A. In multi-product organization, the sales mix remains discretionary. B. Sales and costs behave in ainear manner C. All of the choices are assumptions that underlie gross profit variance analysis D. Costs can be categorized as variable