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

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