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Kenneth works in the accounting department of a local footwear manufacturer that specializes in clogs and boots. Clogs and boots typically sell for $ 1
Kenneth works in the accounting department of a local footwear manufacturer that specializes in clogs and boots. Clogs and boots
typically sell for $ and $ per pair, respectively. Based on past experience, fashion trends, and seasonal shifts, the company
expected to sell pairs of clogs and pairs of boots. The variable cost per pair was $ for clogs and $ for boots.
At the end of the year, Kenneth evaluated the company's sales and contribution margin amounts against the budget. Actual results fo
the year were as follows.
Actual sales volume: clogs, ; boots,
Actual selling price: clogs, $ per pair; boots, $ per pair.
Actual perunit variable costs for each product were the same as budgeted.
c
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
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