Exercise 17-27 (Algo) Industry Volume and Market Share Variances (LO 17-3) Logan Passport Services budgeted sales of 8,300 units of its Basic Visa Service (BVS). This was based on its estimated 5 percent share of this service in the relevant regional market. Actual sales of the BVS for Logan totaled 11,350 units on total industry volume of 146,000 unit for this service. The budgeted contribution margin for BVS is $88 per unit. The actual contribution margin for BVS was $95. Required: Compute the sales activity variance, and break it down into market share variance and the industry volume variance. 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. Sales activity variance Market share variance. Industry volume variance

Exercise 17-27 (Algo) Industry Volume and Market Share Variances (LO 17-3) Logan Passport Services budgeted sales of 8,300 units of its Basic Visa Service (BVS). This was based on its estimated 5 percent share of this service in the relevant regional market. Actual sales of the BVS for Logan totaled 11,350 units on total industry volume of 146,000 unit for this service. The budgeted contribution margin for BVS is $88 per unit. The actual contribution margin for BVS was $95. Required: Compute the sales activity variance, and break it down into market share variance and the industry volume variance. 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. 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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Exercise 17-29 (Algo) Industry Volume and Market Share Variances (LO 17-3) Gerisch Consolidated sold 21,620 units of its only product last period. It had budgeted sales of 24,770 units based on an expected market share of 25 percent. The sales activity variance for the period is $466,200 U. The industry volume variance was $261,960 U. Required: a. What is the budgeted contribution margin per unit for the product? b. What is the actual industry volume? c. What was the actual market share for Gerisch? Note: Round your answer to 1 decimal place (i.e. .123 as 12.3). d. What is the market share variance? 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. a. Contribution margin b. Actual industry volume c. Actual market share d. Market share variance per unit units %
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Check my w QS 21-1 (Algo) Flexible budget performance report LO P1 Beech Company produced and sold 112,000 units in May. For the level of production in May, budgeted amounts were sales, $1,260,000; variable costs, $846,000; and fixed costs, $260,000. The following actual results are available for May. Actual Results Sales (112,000 units) Variable costs Fixed costs $ 1,237,000 814,500 260,000 Prepare a flexible budget performance report for May. Indicate whether each variance is favorable or unfavorable. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.) BEECH COMPANY Flexible Budget Performance Report For Month Ended May 31 Flexible Budget Actual Results Favorable/ Unfavorable $ 1,260,000 Sales Variable costs 846,000 Contribution margin 414,000 0 Fixed costs 260,000 260,000 Income 154,000 $ (260,000) Prev ere to search s $ Variances 1 of 10 ⠀⠀⠀ Unfavorable Favorable Favorable No variance Favorable Next >
PROBLEM 9. Basic Foods expected to sell 30,000 of its fishcharon at P300 each. It actually sold 29,000 at P298. Variable cost per pack is P140. Determine the sales price variance and sales volume variance. PROBLEM 10 The controller of Palma Company is examining the following budgeted and actual income statements for its principal product for 2021. All amounts are in thousands of pesos. Budget P4,800.0 1,668.0 P3.120.0 Actual P4,967.2 1.780.8 P3.186.4 Sales Variable cost Contribution margin The budgeted unit selling price is P8.00. Actual unit volume is 6% over budget, but the actual selling price is below budget. Per-unit variable costs are incurred as budgeted. Determine the sales price variance and sales volume variance.
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Exercise 17-26 (Algo) Sales Mix and Quantity Variances (LO 17-4) A-Zone Media sells two models of e-readers, The budgeted price per unit for the wireless model is $200 and the budgeted price per unit for the wireless and cellular model is $432. The master budget called for sales of 10,800 wireless models and 2,900 wireless and cellular models during the current year, Actual results showed sales of 8,300 wireless mnodels, with a price of $240 per unit, and 4,500 wireless and cellular models, with a price of $560 per unit. The standard variable cost per unit is $88 for a wireless model and $200 for a wireless and cellular model. Requlred: a. Compute the activity variance for these data. b. Compute the mix and quantity varlance for these data. (Enter your answers rounded to the nearest whole dollar.) Complete this question by entering your answers In the tabs below. Required A Required B Compute the activity variance for these data. (Do not round Intermediate calculations. Indicate the…
PROBLEM 10 The controller of Palma Company is examining the following budgeted and actual income statements for its principal product for 2021. All amounts are in thousands of pesos. Budget P4,800.0 1,668.0 P3,120.0 Actual P4,967.2 1,780.8 P3,186.4 Sales Variable cost Contribution margin The budgeted unit selling price is P8.00. Actual unit volume is 6% over budget, but the actual selling price is below budget. Per-unit variable costs are incurred as budgeted. Determine the sales price variance and sales volume variance.
Anjelina wants to purchase an annuity that will pay her the $2,000 she needs at the end of every six months to support her shoe collection. If she plans to do this for the next 4 years and if money is currently worth 3.2% compounded semi-annually, what would her initial investment have to be? Refer to the "?"s in the table and considering inflows and outflows of cash, enter the appropriate values in the blanks below. Round dollar answers to 2 decimal places. Mode ? Mode = N = PV = PMT= FV= Previous Page N ? I/Y 3.2 A N A Next Page P CY 2 PV ? PMT ? PY 2 FV ?
Problem 13-57 (Algo) Sales Expense Budget (LO 13-4) SPU, Ltd., has just recelved its sales expense report for January, which follows. Item Amount Sales commissions $370, 500 9e,400 Sales staff salaries Telephone and mailing Building lease payment 51, 000 60,000 19,100 8e, 000 33,750 51,190 Utilities Packaging and delivery Depreciation Marketing consultants You have been asked to develop budgeted costs for the coming year. Because this month is typical, you decide to prepare an estimated budget for a typical month in the coming year and you uncover the following additional data: Sales volume is expected to Increase by 14 percent. Sales prices are expected to decrease by 10 percent. Commissions are based on a percentage of sales revenue. • Sales staff salarles will increase 4 percent next year regardless of sales volume. • Bullding rent is based on a five-year lease that expires in three years. • Telephone and malling expenses are scheduled to Increase by 6 percent even with no change In…
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 varlance, and break it down into market share variance and the Industry volume variance. (Indicate the effect of each varlance 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
Problem 8-30 (Algo) Integration of the Sales, Production, and Direct Materials Budgets [LO8-2, LO8-3, LO8-4] Milo Company manufactures beach umbrellas. The company is preparing detailed budgets for the third quarter and has assembled the following information to assist in the budget preparation: The Marketing Department has estimated sales as follows for the remainder of the year (in units): July 36,000 October 26,000 August 82,000 November 12,500 September 51,000 December 13,000 The selling price of the beach umbrellas is $15 per unit. All sales are on account. Based on past experience, sales are collected in the following pattern: 30% in the month of sale 65% in the month following sale 5% uncollectible Sales for June totaled $465,000. The company maintains finished goods inventories equal to 15% of the following month’s sales. This requirement will be met at the end of June. Each beach umbrella requires 4 feet of…
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