The next year's budget for Trend, Incorporated, a multi-product company, is given below: Sales Variable costs Fixed costs Net income Units Product Lines At the end of the year, the total fixed costs and the variable costs per unit were exactly as budgeted, but the following units per product line were sold. Trend, Incorporated analyzes the effects its sales variances have on the profitability of the company. 4 A B O $3,570.00 O $20,815.00 Product A $ 1,890,000 926,100 500,000 463,900 252,000 O $33,915.00 What is the total sales quantity variance? O $40,553.50 Units 253,230 113,770 Product B $ 1,377,000 596,700 500,000 280,300 108,000 Sales $ 1,848,579 $ 1,479,010

The next year's budget for Trend, Incorporated, a multi-product company, is given below: Sales Variable costs Fixed costs Net income Units Product Lines At the end of the year, the total fixed costs and the variable costs per unit were exactly as budgeted, but the following units per product line were sold. Trend, Incorporated analyzes the effects its sales variances have on the profitability of the company. 4 A B O $3,570.00 O $20,815.00 Product A $ 1,890,000 926,100 500,000 463,900 252,000 O $33,915.00 What is the total sales quantity variance? O $40,553.50 Units 253,230 113,770 Product B $ 1,377,000 596,700 500,000 280,300 108,000 Sales $ 1,848,579 $ 1,479,010

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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Robinson Company has two products, A and B. Robinson's budget for August follows: Master Budget Sales Variable cost Contribution margin Fixed cost Operating income Selling price Sales Variable cost Contribution margin Fixed cost On September 1, these operating results for August were reported: Operating Results Operating income Units sold Product A $ 330,000 180,000 $ 150,000 120,000 $ 30,000 $ 110 a. Flexible-budget variance b. Sales volume variance c. Sales quantity variance d. Sales mix variance Product B $ 450,000 270,000 $ 180,000 90,000 $ 90,000 $ 50 Product A $ 112,500 68,750 $ 43,750 120,000 $ (76,250) 1,250 Required: 1. For each product, determine the following variances measured in dollars of contribution margin: Product B $ 585,000 393,750 $ 191,250 90,000 $ 101,250 11,250 Product A Product B
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The following information was drawn from the accounting records of Ashton Company. Budgeted Actual Sales $ 10,000 $ 13,000 Cost of Goods Sold (5,000 ) (6,600 ) Gross Margin 5,000 6,400 Variable Cost (2,000 ) (2,700 ) Fixed Cost (2,500 ) (1,900 ) Net Income $ 500 $ 1,800 Based on this information Ashton Company has a Multiple Choice $1,300 favorable sales variance $1,300 unfavorable sales variance $3,000 favorable sales variance $3,000 unfavorable sales variance
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Hh1.
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