D&B Ice Cream budgeted sales of 153,612 units of flavor C, assuming that the company would have 18 percent of 853,400 units sold ina particular market. The actual results were 136,275 units, based on a 15 percent share of a total market of 908,500 units. Thebudgeted contribution margin is $4.30 per unit.Required:Compute the sales activity varlance, and break it down into market share variance and the Industry volume variance. (Indicate theeffect of each varlance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option. Enteryour answers rounded to the nearest whole dollar.)Sales activity varianceMarket share varianceIndustry volume variance

Sales Activity variance = (actual Units sold-budgeted Units sold) * budgeted Contribution margin per…

D&B Ice Cream budgeted sales of 153,612 units of flavor C, assuming that the company would have 18 percent of 853,400 units sold in a particular market. The actual results were 136,275 units, based on a 15 percent share of a total market of 908,500 units. The budgeted contribution margin is $4.30 per unit. Required: Compute the sales activity variance, and break it down into market share variance and the Industry volume variance. (Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option. Enter your answers rounded to the nearest whole dollar.) Sales activity variance Market share variance Industry volume variance

D&B Ice Cream budgeted sales of 153,612 units of flavor C, assuming that the company would have 18 percent of 853,400 units sold in a particular market. The actual results were 136,275 units, based on a 15 percent share of a total market of 908,500 units. The budgeted contribution margin is $4.30 per unit. Required: Compute the sales activity variance, and break it down into market share variance and the Industry volume variance. (Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option. Enter your answers rounded to the nearest whole dollar.) Sales activity variance Market share variance Industry volume variance

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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The master budget at Monroe Manufacturing last period called for sales of 42,300 units at $45 each. The costs were estimated to be $29 variable per unit and $527,000 fixed. During the period, actual production and actual sales were 45,300 units. The selling price was $44 per unit. Variable costs were $31 per unit. Actual fixed costs were $518,000. Required: Prepare a profit variance analysis. Note: Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option. Monroe Manufacturing Profit Variance Analysis Actual Manufacturing Variances Sales Price Variance Flexible Budget Sales Activity Variance Master Budget Sales revenue Less: Variable costs Contribution margin $ 0 $ 0 $ 0 Less: Fixed costs Operating profits $ 0 $ 0 $ 0…
Hh1.
Prepare a flexible budget for Western.
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