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$27 $12 $29 $18 Variable cost per bushel$22 $7 $19 $14 Sales (in bushels) 2,400 3,000 1,200 4,300 The total market was estimated to 34,000 bushels at the time of budget. The actual total market for the year is 26,000 bushels. What is AB's contribution margin sales volume variance? Multiple Choice $6,000 unfavorable. $8,500 favorable. $14,500 unfavorable. $0. $12,000 unfavorable.

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Answered: Wheat Inc. has an exclusive contract…

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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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	$	27		$	12		$	29	$	18
Variable cost per bushel	$	22		$	7		$	19	$	14
Sales (in bushels)		2,400			3,000			1,200		4,300

The total market was estimated to 34,000 bushels at the time of budget. The actual total market for the year is 26,000 bushels.

What is AB's contribution margin sales volume variance?

Multiple Choice

$6,000 unfavorable.
$8,500 favorable.
$14,500 unfavorable.
$0.
$12,000 unfavorable.

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