Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Answer the following questions using the information below: The Fortise Corporation manufactures two types of vacuum cleaners, the Victor for commercial building use and the

image text in transcribed
image text in transcribed
Answer the following questions using the information below: The Fortise Corporation manufactures two types of vacuum cleaners, the Victor for commercial building use and the House-Mate for residences. Budgeted and actual operating data for the year 2015 were as follows: Static Budget House-Mate Total Victor 6,000 30,000 24,000 Number sold Contribution margin $4,680,000 $1,560,000 $3,120,000 Actual Results Total Victor House-Mate 40,000 5,000 35,000 Number sold $4,130,000 $5,530,000 Contribution margin $1,400,000 3. What is the contribution margin for the flexible budget? A) $1,250,000 B) $4,200,000 C) $5,250,000 D) $5,850,000 4. What is the total static-budget variance in terms of the contribution margin? A) $900,000 favorable B) $850,000 favorable C) $250,000 unfavorable D) $450,000 unfavorable 5. What is the total flexible-budget variance in terms of the contribution margin? A) $900,000 favorable B) $850,000 favorable C) $320,000 unfavorable D) $360,000 unfavorable 6. What is the total sales-volume variance in terms of the contribution margin? A) $1,170,000 favorable B) $1,260,000 favorable C) $850,000 unfavorable D) $320,000 unfavorable 7. What is the total sales-quantity variance in terms of the contribution margin? A) $200,000 unfavorable B) $540,000 favorable C) $960,000 unfavorable D) $1,560,000 favorable 8. What is the total sales-mix variance in terms of the contribution margin? A) $200,000 unfavorable B) $390,000 unfavorable C) $900,000 favorable D) $1,260,000 favorable 9. The sales-mix variance will be unfayorable when A) the actual sales mix shifts toward the less profitable units B) the contribution margin per composite unit for the actual mix is greater than the budgeted mix C) the actual unit sales are less than the budgeted unit sales D) the actual contribution margin is less than the static-budget contribution margin 10. The sales-mix variance will be favorable when A) the actual contribution margin is greater than the static-budget contribution margin B) actual unit sales are more than budgeted unit sales C) the actual sales mix shifts toward the less profitable units D) the budgeted contribution margin for actual sales mix is greater than for the budgeted mix

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting And Finance For Non Specialists

Authors: Eddie McLaney, Peter Atrill

8th Edition

9780273778165

More Books

Students also viewed these Accounting questions

Question

Is having a positive self-concept really all that important?

Answered: 1 week ago