Lone Star Condiments, Inc., makes bulk artificial seasonings for use in processed foods. A seasoning was budgeted to sell in 21-liter drums at a price of $48 per drum. The company expected to sell 150,000 drums. Budgeted variable costs are $10 per drum. During the year, the company sold 125,000 drums at a price of $47.50.

Required ee Star Condiments’ cost-management staff computes sales variances from a revenue perspective.

a. Compute the sales-price and sales-volume variances.

b. Assume that the budgeted sales volume was based on an expected 10 percent share of a total market volume of 1.5 million drums, but the actual results were based on a 12.5 percent share of a total market of 1 million drums. Compute the market-size and market-share variances.