Question - Industry Volume and Market Share Variances
Kay's auto products budgeted sales of 50,000 units of product B, assuming that the company would have 20 percent of 250,000 units sold in a particular market. The actual results were 45,000 units, based on a 15 percent share of a total market of 300,000 units. The budgeted contribution margin is $4 per unit.
Compute the sales activity variance, and break it down into market share and industry volume.
Question - Materials Mix and Yield Variances
Huron Group had the following direct materials data for its product:
Standard costs for one unit of output
Material Twinkle 20 units of input at $20
Material Star 40 units of input at $30
During October, the company had the following results:
Units of output produced 2,000 units
Materials purchased and used
Material Twinkle 44,000 units at $18
Material Star 76,000 units at $32
Compute materials priced and efficiency variance.
Compute materials mix and yield variances.
Question - Labor Mix and Yield Variance
Matt's Eat 'N Run has two categories of direct labor, unskilled, which costs $7.50 per hour, and skilled, which costs $15 per hour. Management has established standards per "equivalent friendly meal," which has been defined as a typical meal consisting of a hamburger, a drink, and French fries. Standards have been set as follows:
Skilled Labor 2 Minutes per equivalent meal
Unskilled Labor 6 Minutes per equivalent meal
For the year, Matt's sold 180,000 equivalent friendly meals and incurred the following labor costs:
Skilled Labor 6,000 Hours $92,000
Unskilled Labor 15,000 Hours 180,000
Compute labor price and efficiency variances.
Compute labor mix and yield variances.