1.
Prepare a flexible-
1.
Explanation of Solution
Prepare a flexible-budget contribution income statement for Qtr. 2, showing the Qtr. 2 results, the Qtr. 1 results, and the flexible budget:
Table (1)
2.
Calculate the sales volume variance for each product based both on sales dollars and contribution margin.
2.
Explanation of Solution
Calculate the sales volume variance for each product based both on sales dollars and contribution margin:
In sales Dollars:
Product S:
Product M:
In Contribution Margin:
Product S:
Product M:
3.
Compute the sales mix variance, and the sales quantity variance for each product, based on contribution margin.
3.
Explanation of Solution
Compute the sales mix variance, and the sales quantity variance for each product, based on contribution margin:
Sales Mix Variance:
Product S:
Product M:
Sales Quantity Variance:
Product S:
Product M:
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Chapter 16 Solutions
COST MANAGMENT WITH CONNECT ACCESS
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