Wheat Incorporated 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 $ 95 $ 15 $ 100 $ 17 Variable cost per bushel $ 90 $ 10 $ 90 $ 13 Sales (in bushels) 3,000 4,000 2,700 5,100 The total market was estimated to 70,000 bushels at the time of budget. The actual total market for the year is 39,000 bushels. What is the firm's market size variance? Multiple Choice $29,000 unfavorable. $12,250 unfavorable. $0. $17,500 unfavorable. $15,500 unfavorable.
Wheat Incorporated 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 $ 95 $ 15 $ 100 $ 17 Variable cost per bushel $ 90 $ 10 $ 90 $ 13 Sales (in bushels) 3,000 4,000 2,700 5,100 The total market was estimated to 70,000 bushels at the time of budget. The actual total market for the year is 39,000 bushels. What is the firm's market size variance? Multiple Choice $29,000 unfavorable. $12,250 unfavorable. $0. $17,500 unfavorable. $15,500 unfavorable.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Q18
Wheat Incorporated 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 | $ 95 | $ 15 | $ 100 | $ 17 |
| Variable cost per bushel | $ 90 | $ 10 | $ 90 | $ 13 |
| Sales (in bushels) | 3,000 | 4,000 | 2,700 | 5,100 |
The total market was estimated to 70,000 bushels at the time of budget. The actual total market for the year is 39,000 bushels.
What is the firm's market size variance?
Multiple Choice
-
$29,000 unfavorable.
-
$12,250 unfavorable.
-
$0.
-
$17,500 unfavorable.
-
$15,500 unfavorable.
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