Budget for 2017 Actual for 2017 Selling Variable Cost Selling Price Variable Cost Cartons Cartons per Carton $7.20 per Carton Product Sold Price Sold Kostor $12.00 $12.50 $8.00 130,000 132,000 Limba $15.00 $8.25 $16.00 $7.75 108,000 120,000 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

Budget for 2017 Actual for 2017 Selling Variable Cost Selling Price Variable Cost Cartons Cartons per Carton $7.20 per Carton Product Sold Price Sold Kostor $12.00 $12.50 $8.00 130,000 132,000 Limba $15.00 $8.25 $16.00 $7.75 108,000 120,000 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

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am. 164.
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