The contribution margin sales volume variance for Product X is: Multiple Choice

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Topic Video
Question

Please do not give solution in image format thanku 

Winston Company had two products code named X
and Y. The firm had the following budget for August:
Product Y
Total
Sales
Variable Costs
Contribution Margin
Fixed costs
Operating Income
Selling Price per unit
Sales
Product X
Variable Costs
Contribution Margin
Fixed costs
Operating Income
Units Sold
$ 287,400
205,970
$ 81,430
50,000
$ 31,430
$ 120
On September 1, the following actual operating results
for August were reported:
Product X
$ 523,000
209,200
$ 313,800
108,000
$ 205,800
$ 50
$364,400
200,500
$ 163,900
55,500
$ 108,400
3,110
Product Y
$ 544,400
221,500
$ 322,900
$ 810,400
415,170
$ 395,230
158,000
$ 237,230
113,500
$ 209,400
9,550
Total
$ 908,800
422,000
$ 486,800
169,000
$ 317,800
Total industry volume for both products X and Y was
estimated to be 135,500 units at the time of the
budget. Actual industry volume for the period for
products X and Y was 104,400 units.
The contribution margin sales volume variance for
Product X is:
Multiple Choice
$10,800 unfavorable.
$13,600 favorable.
$20,000 favorable.
$20,000 unfavorable.
$24,310 favorable.
Transcribed Image Text:Winston Company had two products code named X and Y. The firm had the following budget for August: Product Y Total Sales Variable Costs Contribution Margin Fixed costs Operating Income Selling Price per unit Sales Product X Variable Costs Contribution Margin Fixed costs Operating Income Units Sold $ 287,400 205,970 $ 81,430 50,000 $ 31,430 $ 120 On September 1, the following actual operating results for August were reported: Product X $ 523,000 209,200 $ 313,800 108,000 $ 205,800 $ 50 $364,400 200,500 $ 163,900 55,500 $ 108,400 3,110 Product Y $ 544,400 221,500 $ 322,900 $ 810,400 415,170 $ 395,230 158,000 $ 237,230 113,500 $ 209,400 9,550 Total $ 908,800 422,000 $ 486,800 169,000 $ 317,800 Total industry volume for both products X and Y was estimated to be 135,500 units at the time of the budget. Actual industry volume for the period for products X and Y was 104,400 units. The contribution margin sales volume variance for Product X is: Multiple Choice $10,800 unfavorable. $13,600 favorable. $20,000 favorable. $20,000 unfavorable. $24,310 favorable.
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Performance measurements
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education