Exercise 17-28 (Algo) Industry Volume and Market Share Variances (LO 17-3) Piper Products sold 416,000 units during the last period when industry volume totaled 2.90 million units. The company originally expected to sell 452,500 based on a budgeted market share of 15 percent. The budgeted selling price was $14 per unit. Budgeted variable costs were $6 per unit. Budget fixed costs were $1,870,000 and applied based on units produced. Required: Compute the sales activity variance, and break it down into market share variance and the industry volume variance. Note: Do not round intermediate calculations. 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 17-28 (Algo) Industry Volume and Market Share Variances (LO 17-3) Piper Products sold 416,000 units during the last period when industry volume totaled 2.90 million units. The company originally expected to sell 452,500 based on a budgeted market share of 15 percent. The budgeted selling price was $14 per unit. Budgeted variable costs were $6 per unit. Budget fixed costs were $1,870,000 and applied based on units produced. Required: Compute the sales activity variance, and break it down into market share variance and the industry volume variance. Note: Do not round intermediate calculations. 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

Name: Exercise 17-28 (Algo) Industry Volume and Market Share Variances (LO
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Description: Exercise 17-28 (Algo) Industry Volume and Market Share Variances (LO 17-3)Piper Products sold 416,000 units during the last period when industry volume totaled 2.90 million units. The company originallyexpected to sell 452,500 based on a budgeted ma

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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JAR-174 tour company uses two measures of activity, routes and passengers in its cost formulas used for budgeting and performance evaluation. The cost formula for tour operating costs is $56,850 per month plus $2,884 per route plus $18 per passenger. The company expected in August to perform 89 routes and serve 255 passengers, but the actual activity was 95 routes and 270 passengers. The actual tour operating costs in August was $305,100. The spending variance for tour operating costs in August would be closest to: Multiple Choice O O $17,574 Favorable $30,590 Favorable $30,590 Unfavorable $13,016 Favorable $13 016 Unfavorable
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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…
Q50 In September, Numbers Incorporated sold 45,000 units of its only product for $394,000, and incurred a total cost of $365,000, of which $39,000 was fixed costs. The flexible budget for September showed total sales of $440,000. Among variances of the period were: total variable cost flexible-budget variance, $7,500U; total flexible-budget variance, $76,000U; and, sales volume variance, in terms of contribution margin, $41,000U. The budgeted fixed cost for September was: Multiple Choice $83,500. $16,500. $45,500. $134,000. $105,000.
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3. Before the year began, the following static budget was developed for the estimated sales of 100,000. Sales are sluggish and management needs to revise its budget. Use this information to prepare a flexible budget for 80,000 and 90,000 units of sales. Sales $3,500,000 Cost of goods sold Direct material 900,000 Direct labor 1,000,000 Variable manufacturing overhead Fixed manufacturing overhead Cost of goods sold Gross profit Variable sales and administration expenses Fixed sales and administration expenses 250,000 80,000 2,230,000 1,270,000 100,000 950,000 Income before taxes 220,000 Таxes 66,000 Net income $ 154,000
Subject : Accounting