Total industry volume for both products X and Y was estimated to be 130,000 units at the time of the budget. Actual industry volume for the period for products X and Y was 100,000 units. The sales mix variance for Product Y is: (Round your sales mix percentage to whole percentage.)
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Winston Co. had two products code named X and Y. The firm had the following budget for August:
| Product X | Product Y | Total | ||||||||||
| Sales | $ | 190,000 | $ | 486,000 | $ | 676,000 | ||||||
| Variable Costs | 114,000 | 194,400 | 308,400 | |||||||||
| Contribution Margin | $ | 76,000 | $ | 291,600 | $ | 367,600 | ||||||
| Fixed costs | 14,000 | 100,000 | 114,000 | |||||||||
| Operating Income | $ | 62,000 | $ | 191,600 | $ | 253,600 | ||||||
| Selling Price per unit | $ | 100 | $ | 50 | ||||||||
On September 1, the following actual operating results for August were reported:
| Product X | Product Y | Total | ||||||||||
| Sales | $ | 361,600 | $ | 504,000 | $ | 865,600 | ||||||
| Variable Costs | 197,000 | 218,000 | 415,000 | |||||||||
| Contribution Margin | $ | 164,600 | $ | 286,000 | $ | 450,600 | ||||||
| Fixed costs | 52,000 | 110,000 | 162,000 | |||||||||
| Operating Income | $ | 112,600 | $ | 176,000 | $ | 288,600 | ||||||
| Units Sold | 3,000 | 9,000 | ||||||||||
Total industry volume for both products X and Y was estimated to be 130,000 units at the time of the budget. Actual industry volume for the period for products X and Y was 100,000 units.
The sales mix variance for Product Y is: (Round your sales mix percentage to whole percentage.)
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$32,400 unfavorable.
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$34,910 favorable.
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$26,800 favorable.
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$30,260 favorable.
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$61,910 unfavorable.
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