Tolome and Market Share variances (EO 17% Piper Products sold 413,000 units during the last period when industry volume totaled 2.87 million units. The company originally expected to sell 449,500 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 $1,840,000 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
Tolome and Market Share variances (EO 17% Piper Products sold 413,000 units during the last period when industry volume totaled 2.87 million units. The company originally expected to sell 449,500 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 $1,840,000 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
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Piper Products sold 413,000 units during the last period when industry volume totaled 2.87 million units. The company originally
expected to sell 449,500 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 $1,840,000 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
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