Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Edward works in the accounting department of a local footwear manufacturer that specializes in clogs and boots. Clogs and boots typically sell for $95 and
Edward works in the accounting department of a local footwear manufacturer that specializes in clogs and boots. Clogs and boots typically sell for $95 and $207 per pair, respectively. Based on past experience, fashion trends, and seasonal shifts, the company expected to sell 730 pairs of clogs and 270 pairs of boots. The variable cost per pair was $52 for clogs and $78 for boots. At the end of the year, Edward evaluated the company's sales and contribution margin amounts against the budget. Actual results for the year were as follows. - Actual sales volume: clogs, 869; boots, 231. - Actual selling price: clogs, \$105 per pair; boots, \$197 per pair. - Actual per-unit variable costs for each product were the same as budgeted. For the year just ended, determine the company's total revenues, total variable costs, and total contribution margin for its (1) master budget, (2) flexible budget, and (3) actual income statement. Calculate the company's sales price variance and comprehensive sales activity variance, specifying the amount and sign for each. Sales price variance Sales activity variance Break down the company's comprehensive sales activity variance into the sales mix variance and sales quantity variance, specifying the amount and sign for each. Sales mix variance $ Sales quantity variance $ Which of these two variances had a bigger effect on the comprehensive sales activity variance this year? The had a greater effect on the sales activity variance Break down the company's comprehensive sales activity variance into the sales mix variance and sales quantity variance, specifying the amount and sign for each. Sales mix variance $ Sales quantity variance $ Which of these two variances had a bigger effect on the comprehensive sales activity variance this year? The had a greater effect on the sales activity variance
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started