Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Matter Corp. buys and sells two types of sunglasses in New York: Duma and Kool. Budgeted and actual results for 2021 are as follows: (Click
Matter Corp. buys and sells two types of sunglasses in New York: Duma and Kool. Budgeted and actual results for 2021 are as follows: (Click the icon to view the budgeted and actual results.) Required Compute the total sales-volume variance, the total sales-mix variance, and the total sales-quantity variance. (Calculate all variances in terms of contribution margin (CM).) Show results for each product in your computations. Data table number, X%.) Budget for 2021 Actual for 2021 Selling Variable Cost Selling Variable Cost Product Price per Unit Units Sold Price per Unit Units Sold Duma $ 29 $ 12 Kool $ 25 $ 17 91,000 $ 130,000 $ 29 20 $ 11 90,000 $ 20 107,000 X%.) Print Done Now, compute the total sales-mix variance. (Calculate all variances in terms of contribution margin.) Show results for each product in your computations. Now, determine the formula for the sales-mix variance, and then calculate the variance for each type of sunglasses and in total for 2021. Label each variance as favourable (F) or unfavourable (U). (Enter any percentages as a whole number. Enter all variances as positive numbers. Abbreviations used: CM = contribution margin; VC = variable cost.) Duma Kool Actual Actual Budgeted Budgeted ( x ( %- %- %) x %) x X ( %- %) x The total sales-mix variance is Sales-mix variance Compute the total sales-quantity variance. (Calculate all variances in terms of contribution margin.) Show results for each product in your computations. Let's first determine the formula for the sales-quantity variance, and then calculate the variance for each type of sunglasses and in total for 2021. Label each variance as favourable (F) or unfavourable (U). (Enter percentages as a whole number. Enter all variances as positive numbers. Abbreviation used: CM = contribution margin.) Duma ( Kool Actual The total sales-quantity variance is Budgeted Sales-quantity )x sales-mix )x % x % x CM per unit = variance = % x Compute the total sales-volume variance. (Calculate all variances in terms of contribution margin.) Show results for each product in your computations. Determine the formula for sales-volume variance, and then compute the sales-volume variance for each type of sunglasses and in total for Matter in 2021. Label each variance as favourable (F) or unfavourable (U). (Enter all variances as positive numbers. Abbreviation used: qty = quantity.) Duma Kool The total sales-volume variance is x Sales-volume variance Now, compute the total sales-mix variance. (Calculate all variances in terms of contribution margin.) Show results for each product in your computations
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