Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Luna Corp has two products named A and B. The firm had the following master budget for the year just completed: Product A Product B

Luna Corp has two products named A and B. The firm had the following master budget for the year just completed:

Product A

Product B

Sales

$300,000

$450,000

Variable Costs

$150,000

$180,000

Fixed Costs

$50,000

$60,000

Operating Income

$100,000

$210,000

CM per unit

$15

$30

Units

10,000

9,000

The following operating results were reported after the year was over:

Product A

Product B

Sales

$320,000

$460,000

Variable Costs

$160,000

$200,000

Fixed Costs

$50,000

$60,000

Operating Income

$110,000

$200,000

CM per unit

$14.55

$28.89

Units

11,000

9,000

The total market was estimated to be 50,000 units at the time of budget. The actual total market for the year is 65,000 units. The sales mix variance for Product A is:

$7,105U $6,750F $7,105F $14,211U $14,211F

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

Commercial Energy Auditing Reference Handbook

Authors: Steve Doty

2nd Edition

1439851972, 978-1439851975

More Books

Students also viewed these Accounting questions

Question

What was the positive value of Max Weber's model of "bureaucracy?"

Answered: 1 week ago