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(c) Break down the company's comprehensive sales activity variance into the sales mix variance and sales quantity variance, specifying the amount and sign for each. Sales mix variance $ Sales quantity variance $ The Favorable Unfavorable Neither Favorable nor Unfavorable Which of these two variances had a bigger effect on the comprehensive sales activity variance this year? had a greater effect on the sales activity variance

(c) Break down the company's comprehensive sales activity variance into the sales mix variance and sales quantity variance, specifying the amount and sign for each. Sales mix variance $ Sales quantity variance $ The Favorable Unfavorable Neither Favorable nor Unfavorable Which of these two variances had a bigger effect on the comprehensive sales activity variance this year? had a greater effect on the sales activity variance

FINANCIAL ACCOUNTING
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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(c) Break down the company's comprehensive sales activity variance into the sales mix variance and sales quantity variance. specifying the amount and sign for each. Sales mix variance Sales quantity variance $ The $ Favorable Unfavorable Neither Favorable nor Unfavorable Which of these two variances had a bigger effect on the comprehensive sales activity variance this year? had a greater effect on the sales activity variance
Transcribed Image Text:(c) Break down the company's comprehensive sales activity variance into the sales mix variance and sales quantity variance. specifying the amount and sign for each. Sales mix variance Sales quantity variance $ The $ Favorable Unfavorable Neither Favorable nor Unfavorable Which of these two variances had a bigger effect on the comprehensive sales activity variance this year? had a greater effect on the sales activity variance
Kevin works in the accounting department of a local footwear manufacturer that specializes in clogs and boots. Clogs and boots typically sell for $105 and $193 per pair, respectively. Based on past experience, fashion trends, and seasonal shifts, the company expected to sell 770 pairs of clogs and 230 pairs of boots. The variable cost per pair was $48 for clogs and $83 for boots. At the end of the year, Kevin evaluated the company's sales and contribution margin amounts against the budget. Actual results for the year were as follows. ● ● Actual sales volume: clogs, 946; boots, 154. Actual selling price: clogs, $114 per pair; boots, $184 per pair. Actual per-unit variable costs for each product were the same as budgeted.
Transcribed Image Text:Kevin works in the accounting department of a local footwear manufacturer that specializes in clogs and boots. Clogs and boots typically sell for $105 and $193 per pair, respectively. Based on past experience, fashion trends, and seasonal shifts, the company expected to sell 770 pairs of clogs and 230 pairs of boots. The variable cost per pair was $48 for clogs and $83 for boots. At the end of the year, Kevin evaluated the company's sales and contribution margin amounts against the budget. Actual results for the year were as follows. ● ● Actual sales volume: clogs, 946; boots, 154. Actual selling price: clogs, $114 per pair; boots, $184 per pair. Actual per-unit variable costs for each product were the same as budgeted.
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