Shand Pipes offers three types of valves for sale to retailers: Ball Valves, Butterfly Valves and Foot Valves. Actual and Budget operating data by product for the most recent reporting period are as follows:
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
Shand Pipes offers three types of valves for sale to retailers: Ball Valves, Butterfly Valves and Foot Valves. Actual and Budget operating data by product for the most recent reporting period are as follows:
Thank you, appreciate your help
![c. Provide an explanation for the primary driver of the sales-mix variance.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4629113d-c784-4ef8-a802-45f912a4d1e7%2F7170b308-9e80-431a-8d72-0951d6857a37%2Fb1o1a0eh_processed.png&w=3840&q=75)
![ACTUAL
B.Fly
Foot
Ball
Ball
45,220
Sales-# valves
71,400
121,380
57,500
Sales Price per
valve
$449
$190
$125
$450
VC per valve
$288 $142
$95
$290
a. Calculate the sales-mix variance for each product and in total.
b. Calculate the sales-quantity variance for each product and in total.
BUDGET
B.Fly
87,500
$200
$140
Foot
105,000
$120
$90](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4629113d-c784-4ef8-a802-45f912a4d1e7%2F7170b308-9e80-431a-8d72-0951d6857a37%2Firwsm4u_processed.png&w=3840&q=75)
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