Question 2) Textbook Exercise 14-22: Cost allocation and decision making. (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

Variances is he deviation of actual results from the standard or budgeted results. Higher variances…

$4-27/ Variance analysis, multipfe products. Soda-King manufactures and sells two soft drinks: Kola and Lìmer. Budgeted and actual results for 2017 are as follows: Budget for 2017 Actual for 2017 Cartons Sold Variable Cost Selling Price Selling Price Variable Cost Cartons Sold Product Kolo per Carton $5.50 per Carton $5.75 504,300 725,700 $10.10 $10.00 $ 7.50 500,000 Limor $4.00 750,000 $ 7.75 $3.70 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?

$4-27/ Variance analysis, multipfe products. Soda-King manufactures and sells two soft drinks: Kola and Lìmer. Budgeted and actual results for 2017 are as follows: Budget for 2017 Actual for 2017 Cartons Sold Variable Cost Selling Price Selling Price Variable Cost Cartons Sold Product Kolo per Carton $5.50 per Carton $5.75 504,300 725,700 $10.10 $10.00 $ 7.50 500,000 Limor $4.00 750,000 $ 7.75 $3.70 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?

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

Choose the most appropriate answer(s): Calculation of product cost, gathering information for planning and analyzing information for decisions making are features of: information accounting cost accounting analyzing accounts marketing costs
MACRS stands for a. Modified Annual Cost Recovery System b. Modified Audited Cost Recovery System c. Modified Accounting Cost Recovery System d. Modified Accelerated Cost Recovery System
11
What is the purpose of cost allocation in terms of economic decisions, motivation and justifying costs? Answer in 250 words.
27) Which among the following cost encourage management to focus on life cycle costing? a. All the options listed b. Maintenance costs c. Repair costs d. Warranty costs
Explain in details what the textbook means by a “cost hierarchy”
Explain and discuss your understanding about the full cost-pricing with 3 example of its possible application
8. Which of the following is a non-value-added activity? Group of answer choices Inspection Engineering design. Rework. Machining.
Define cost pool, cost object and cost driver and explain. Thank you in advance!
Determine the number of staff needed to cover classes.
Define learning curve. Outline two models that can be used when incorporating learning into the estimation of cost functions.
List 4 specific examples of the type of information from Standard Costing system which can provide to assist managers to makedecisions.