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ables2You is a table manufacturing company based in County Antrim. The company uses a standard variable costing system and serves both the UK and export

ables2You is a table manufacturing company based in County Antrim. The company uses a standard variable costing system and serves both the UK and export markets. They make two types of tables, Table 1 and Table 2. Each table has a separate manufacturing facility, but a central sales department promotes and distributes the tables. The sales department has authority to change selling prices and promote products more heavily than originally planned, if appropriate. A summary of the budgeted and actual results for last month are as below:

Budget

Table 1

Table 2

Total

Sales volume (units)

10,395

8,505

18,900

Sales ()

254,677

272,160

526,837

Materials ()

93,555

80,798

174,353

Labour ()

66,528

96,957

163,485

Fixed overheads ()

46,200

51,100

97,300

Total costs ()

206,283

228,855

435,138

Profit ()

48,394

43,305

91,699

Actual

Table 1

Table 2

Total

Sales volume (units)

13,720

5,880

19,600

Sales ()

356,720

179,340

536,060

Materials ()

150,225

50,872

201,097

Labour ()

95,550

70,000

165,550

Fixed overheads ()

45,500

45,150

90,650

Total costs ()

291,275

166,022

457,297

Profit ()

65,445

13,318

78,763

The sales manager has noted that customers regard Table 1 and Table 2 as alternative products, and the two compete with each other to some degree. At the time of preparation of the budget above, it was assumed that the total market for both tables would be 34,000 tables. However, the actual size of the market was 37,000.

What is the total sales mix variance?

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