HORNGRENS COST ACCOUNTING W/ACCESS
16th Edition
ISBN: 9781323687604
Author: Datar
Publisher: PEARSON
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Textbook Question
Chapter 14, Problem 14.28E
Market-share and market-size variances (continuation of 14-27). Emcee Inc. prepared the budget for 2017 assuming a 20% market share based on total sales in the Midwest region of the United States. The total fruit drinks market was estimated to reach sales of 1.25 million cartons in the region. However actual total sales volume in the western region was 1.5 million cartons.
Calculate the market-share and market-size variances for Emcee Inc. in 2017. (Calculate all variances in terms of contribution margin.) Comment on the results.
14-27
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Prepare
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flexible budget performance report. What variance contributed most to the year's favorable results? What caused this variance?
Prepare a flexible budget performance report for the year. First, complete the flexible budget performance report through the contribution margin line, then complete the report through the operating income line. Finally, compute the total variances. (Enter a "0" for any zero balances. For any $0 variances, leave the Favorable (F)/Unfavorable (U) input blank.)
Cole Industries
Flexible Budget Performance Report
For the Year Ended December 31, 2018
1
2
3
4
5…
In a recent year a car manufacturer sold 217,044 cars. The company budgeted to sell 226,244 cars during the year. The budgeted
sales price for each car was $33,000 and the actual sales price for each car was $33,300.
AQ-Actual Quantity
SQ-Standard Quantity
AP Actual Price
SP Standard Price
Compute the sales price variance and the sales volume varjance and identify each variance as favorable or unfavorable.
Actual Sales
Flexible budget
Budgeted Sales
TV Timers, Incorporated, manufactures time control devices for TV's. The firm has the following operating data for its operations in July:
Actual market size
Budgeted market size
Actual market share
Budgeted market share
Budgeted average contribution margin
Actual average contribution margin
What is the company's market share variance?
A. $1,590 favorable.
B. $1,784 favorable.
C. $1,740 favorable.
D. $2,070 favorable.
E. $3,660 favorable.
14,500
16,300
34%
32%
$6.00
$5.25
Chapter 14 Solutions
HORNGRENS COST ACCOUNTING W/ACCESS
Ch. 14 - Prob. 14.1QCh. 14 - Why is customer-profitability analysis an...Ch. 14 - Prob. 14.3QCh. 14 - A customer-profitability profile highlights those...Ch. 14 - Give examples of three different levels of costs...Ch. 14 - What information does the whale curve provide?Ch. 14 - A company should not allocate all of its corporate...Ch. 14 - What criteria might managers use to guide...Ch. 14 - Once a company allocates corporate costs to...Ch. 14 - A company should not allocate costs that are fixed...
Ch. 14 - How should a company decide on the number of cost...Ch. 14 - Show how managers can gain insight into the causes...Ch. 14 - How can the concept of a composite unit be used to...Ch. 14 - Explain why a favorable sales-quantity variance...Ch. 14 - How can the sales-quantity variance be decomposed...Ch. 14 - Flexible-budget variance, sales-quantity,...Ch. 14 - Sales-volume, sales-mix, and sales-quantity...Ch. 14 - Cost allocation in hospitals, alternative...Ch. 14 - Customer profitability, customer-cost hierarchy....Ch. 14 - Customer profitability, service company. Instant...Ch. 14 - Customer profitability, distribution. Best Drugs...Ch. 14 - Cost allocation and decision making. Reidland...Ch. 14 - Cost allocation to divisions. Rembrandt Hotel ...Ch. 14 - Cost allocation to divisions. Bergen Corporation...Ch. 14 - Prob. 14.25ECh. 14 - Variance analysis, working backward. The Hiro...Ch. 14 - Variance analysis, multiple products. Emcee Inc....Ch. 14 - Market-share and market-size variances...Ch. 14 - Click here to open your MyFinanceLab Study Plan...Ch. 14 - Customer profitability. Bracelet Delights is a new...Ch. 14 - Customer profitability, distribution. Green Paper...Ch. 14 - Customer profitability in a manufacturing firm....Ch. 14 - Customer-cost hierarchy, customer profitability....Ch. 14 - Allocation of corporate costs to divisions. Cathy...Ch. 14 - Cost allocation to divisions. Forber Bakery makes...Ch. 14 - Prob. 14.36PCh. 14 - Cost-hierarchy income statement and allocation of...Ch. 14 - Variance analysis, sales-mix and sales-quantity...Ch. 14 - Market-share and market-size variances...Ch. 14 - Variance analysis, multiple products. The Robins...Ch. 14 - Customer profitability and ethics. KC Corporation...
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