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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Jordan Educational Services had budgeted its training service charge at $71 per hour. The company planned to provide 31,000 hours of training services during the year. By lowering the service charge to $55 per hour, the company was able to increase the actual number of hours to 32,000. Required a. Determine the sales volume variance, and indicate whether it is favorable or unfavorable. Note: Select "None" if there is no effect (i.e., zero variance). b. Determine the flexible budget variance, and indicate whether it is favorable or unfavorable. Note: Select "None" if there is no effect (i.e., zero variance). c. Did lowering the price of training services increase revenue? a. Volume variance b. Flexible budget variance c. Did lowering the price of training services increase revenue? Sales
The master budget at Monroe Manufacturing last period called for sales of 42,000 units at $42 each. The costs were estimated to be $26 variable per unit and $524,000 fixed. During the period, actual production and actual sales were 45,000 units. The selling price was $41 per unit. Variable costs were $28 per unit. Actual fixed costs were $515,000. Required: Prepare a sales activity 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 Sales Activity Variance Flexible Budget Sales Activity Variance Favorable or Unfavorable Master Budget Sales revenue Less: variable costs Contribution margin Less: Fixed Costs Operating Profits
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The master budget at Western Company last period called for sales of 240,000 units at $8.00 each. The costs were estimated to be $4.00 variable per unit and $270,000O fixed. During the period, actual production and actual sales were 245,000 units. The selling price was $8.10 per unit. Variable costs were $4.75 per unit. Actual fixed costs were $270,000. Required: Prepare a flexible budget for Western. WESTERN COMPANY Flexible Budget 2$
The master budget at Monroe Manufacturing last period called for sales of 43,700 units at $59 each. The costs were estimated to be $43 variable per unit and $541,000 fixed. During the period, actual production and actual sales were 46,700 units. The selling price was $58 per unit. Variable costs were $45 per unit. Actual fixed costs were $532,000. Required: Prepare a sales activity 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.
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