Variance analysis, multiple products
Not what you're looking for?
14-25 Variance analysis, multiple products. Soda-king manufactures and sells three soft drinks: Kola, Limor, and Orlem. Budgeted and actual results for 2009 are as follows:
Budget for 2009 Actual for 2009
Product Selling Price Variable Cost per carton Cartons Sold Selling Price Variable Cost per carton Cartons Sold
Kola $6.00 $4.00 400,000 $6.20 $4.50 480,000
Limor $4.00 $2.80 600,000 $4.25 $2.75 900,000
Orlem $7.00 $4.50 1,500,000 $6.80 $4.60 1,620,000
1. Compute the total-sales volume variance, the total sales-mix variance, and the total sales-quantity variance. (Calculate all variances in terms of contribution margin.) Show results for each production in you computation.
2. What inferences can you draw from the variances computed in requirement 1?
Purchase this Solution
Solution Summary
The expert computes the total-sales volume variance, the total sales-mix variance, and the total sales-quantity variance. The inference that is draw from the variance computed in requirements is determined.
Solution Preview
Answer
sales volume variance= (actual units-budgeted units)* budgeted contribution margin budgeted contribution margin= budgeted selling price per unit-variable cost per unit
Kola 160000 favourable Kola 2
Limor ...
Purchase this Solution
Free BrainMass Quizzes
Academic Reading and Writing: Critical Thinking
Importance of Critical Thinking
Organizational Behavior (OB)
The organizational behavior (OB) quiz will help you better understand organizational behavior through the lens of managers including workforce diversity.
Situational Leadership
This quiz will help you better understand Situational Leadership and its theories.
Organizational Leadership Quiz
This quiz prepares a person to do well when it comes to studying organizational leadership in their studies.
Understanding the Accounting Equation
These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.