Chair Company manufactures two modular types of chairs: one for the residential market, and the other for the office market. Budgeted and actual operating data for the year 2013 are:

Static Budget Residential Office Total

Number of chairs sold 260,000 140,000 400,000

Contribution margin $26,000,000 $11,200,000 $37,200,000

Actual Results Residential Office Total

Number of chairs sold 248,400 165,600 414,000

Contribution margin $22,356,000 $13,248,000 $35,604,000

REQUIRED: (Show your detailed calculations.)

Compute the following variances in terms of contribution margin:

a. Compute the total static-budget variance, the total

b. Compute the sale-mix variance and the sales-quantity variance by type of chair, and in total.

are Static Budset Reydontral Dce Tetal Number of chaur woll 260,000140,000400,000 Contritubiot matrin 525,000,050511,700,000537,200,000 Nomber of chaus wold 241,400165,600414,000 Cortituticit mation 322356,000311,248,000535,604,000 TW QUIRED ( rithon ywe draill cakcitation)