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Total-sales volume variance

Task: 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

Question 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.

Question 2. What inferences can you draw from the variances computed in requirement 1?

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Accounting Basics: Total-sales volume variance

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Solution Preview :

Prepared by a verified Expert

Accounting Basics: Total-sales volume variance

Reference No:- TGS01621002

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Recent Questions Asked Accounting Basics

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Solution Preview :

Prepared by a verified Expert

Accounting Basics: Total-sales volume variance

Reference No:- TGS01621002

Recent Questions Asked Accounting Basics

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