Wheat Inc. has an exclusive contract with an exporter. Two brands of wheat are imported, labeled AB and CD. The following data are provided for the current fiscal year: Budgeted Actual Results AB CD AB CD Price per bushel $ 80 $ 25 $ 85 $ 17 Variable cost per bushel $ 75 $ 20 $ 75 $ 13 Sales (in bushels) 2,700 3,700 2,400 4,800 The total market was estimated to 64,000 bushels at the time of budget. The actual total market for the year is 36,000 bushels. $0. $14,000 unfavorable. $10,750 unfavorable. $16,000 unfavorable. $27,500 unfavorable. What is the firm's market size variance
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.
Wheat Inc. has an exclusive contract with an exporter. Two brands of wheat are imported, labeled AB and CD. The following data are provided for the current fiscal year:
| Budgeted | Actual Results | |||||||||||||||
| AB | CD | AB | CD | |||||||||||||
| Price per bushel | $ | 80 | $ | 25 | $ | 85 | $ | 17 | ||||||||
| Variable cost per bushel | $ | 75 | $ | 20 | $ | 75 | $ | 13 | ||||||||
| Sales (in bushels) | 2,700 | 3,700 | 2,400 | 4,800 | ||||||||||||
The total market was estimated to 64,000 bushels at the time of budget. The actual total market for the year is 36,000 bushels.
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$0.
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$14,000 unfavorable.
-
$10,750 unfavorable.
-
$16,000 unfavorable.
-
$27,500 unfavorable.
What is the firm's market size variance?
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