Omaha Steaks sells a variety of meats. During April, the following information was gathered: Tri-TipLondon BroilRib-eyeBudgeted units sold400250300Actual units sold500400350Budgeted selling price$30$11$18Actual selling price$25$12$28Budgeted variable cost$18$5$10Actual variable cost$15$4$11 Actual market size was 4,500, whereas budgeted market share was 22%. REQUIRED:Compute the sales-volume, sales-mix, sales-quantity, market-share, and market-size variances. Be sure to indicate whether each is favorable or unfavorable!

Variance analysis: Variance analysis is a tool used by the management to calculate the deviation…

Answered: Omaha Steaks sells a variety of meats.…

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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Omaha Steaks sells a variety of meats. During April, the following information was gathered:

	Tri-Tip	London Broil	Rib-eye
Budgeted units sold	400	250	300
Actual units sold	500	400	350
Budgeted selling price	$30	$11	$18
Actual selling price	$25	$12	$28
Budgeted variable cost	$18	$5	$10
Actual variable cost	$15	$4	$11

Actual market size was 4,500, whereas budgeted market share was 22%.

REQUIRED:

Compute the sales-volume, sales-mix, sales-quantity, market-share, and market-size variances. Be sure to indicate whether each is favorable or unfavorable!

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