=+11-35 KKK Variance analysis, multiple products (Appendix 11-1)

Mountain Spring manufactures and sells varieties of sports drinks: berry, lemon and orange. Budgeted and actual results for 2015 are as follows:

Budget for 2015 Actual for 2015 Product Selling price Variable cost per box Boxes sold Selling price Variable cost per box Boxes sold Berry $7.00 $4.50 500 000 $7.25 $4.60 450 000 Lemon $5.00 $3.00 900 000 $5.35 $3.10 1 000 000 Orange $8.00 $5.00 1 100 000 $8.50 $5.25 1 050 000 Required 1 Calculate 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 calculations.