Problem:
The following information is available for Davis Company regarding sales of Blobs and Globs.
Budget Blobs/unit Total Blobs Globs/unit Total Globs Total 500 Units
budgeted budgeted
(100 units) (400 units)
Sales $100 $10,000 $35 $14,000 $24,000
Var Cost 80 8,000 30 12,000 20,000
Cont Margin 20 2,000 5 2,000 4,000
Budgeted Mix 20% 80%
Actual Blobs/unit Total blobs Globs/unit Total Globs Total 600 Units
sold sold
(90 units) (510 units)
Sales $100 $9,000 $35 $17,850 $26,850
Var Costs 80 7,200 30 15,300 22,500
cont Margin 20 1,800 5 2,550 4,350
budgeted mix 15% 85%
Calculate the sales volume variance only for both products and the company as a whole.