The PopStop manufactures and sells three soft drinks: Kola, Lima, and Oranga. Budgeted and actual results for
Question:
The PopStop manufactures and sells three soft drinks: Kola, Lima, and Oranga. Budgeted and actual results for 2018 are as follows: Budget for 2018 Actual for 2018 Product Kola Lima Oranga Selling Price $6.00 4.00 7.00 Variable Cost per Case $4.00 2.80 4.50 Cases Sold 400,000 600,000 1,500,000 Selling Price $6.20 4.25 6.80 Variable Cost per Case $4.50 2.75 4.60 Cases Sold 480,000 900,000 1,620,000 Required 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 product in your computations. 2. What inferences can you draw from the variances computed in requirement 1?
Horngrens Cost Accounting A Managerial Emphasis
ISBN: 978-0134453736
8th Canadian Edition
Authors: Srikant M. Datar, Madhav V. Rajan, Louis Beaubien