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Part 1 The Kazu Corporation ( KC ) sells two brands of wine glasses: Plain and Chic. KC provides the following information for sales in

Part 1
The Kazu Corporation (KC) sells two brands of wine glasses: Plain and Chic. KC provides the following information for sales in the month of June:
LOADING...(Click the icon to view the information for sales.)
All variances are to be computed in contribution-margin terms.
Required
1.
Calculate the sales-quantity variances for each product for June.
2.
Calculate the individual-product and total sales-mix variances for June. Calculate the individual-product and total sales-volume variances for June.
3.
Briefly describe the conclusions you can draw from the variances.
Question content area bottom
Part 1
Requirement 1. Calculate the sales-quantity variances for each product for June.
Begin by determining the basic formula for Kazu Corporation's static-budget total contribution margin (CM).
Plain wine glasses
Chic wine glasses
Budgeted
Budgeted
Budgeted
Budgeted
Budgeted
Budgeted
Static-budget
(
x
x
)+(
x
x
)=
total CM
Part 2
Rearrange the formula to determine the sales mix for each product.
The sales-mix percentage of Plain wine glasses is
enter your response here%.
Part 3
The sales-mix percentage of Chic wine glasses is
enter your response here%.
Part 4
Next, determine the formula and compute the budgeted CM based on actual units sold of all products at the budgeted mix.
Budgeted CM based on actual
=
units sold at the budgeted mix
=
Part 5
The actual number of all glasses sold is
enter your response here units.
Part 6
Now, determine the formula, and then calculate the sales-quantity variances for each product for June. Label each variance as favourable (F) or unfavourable (U).(Enter percentages, if any, as decimals rounded to two places, "X.XX".)
Budgeted
Actual
Budgeted
Budgeted
Sales-quantity
(
) x
x
=
variance
Plain
(
) x
x
=
Chic
(
) x
x
=
Part 7
Requirement 2. Calculate the individual-product and total sales-mix variances for June. Calculate the individual-product and total sales-volume variances for June.
Begin with the individual-product sales-mix variances for June. Determine the formula, and then calculate the variance for each product. Label each variance as favourable (F) or unfavourable (U).(Enter percentages, if any, as decimals rounded to two places, "X.XX".)
Part 8Part 9
Actual
Budgeted
Actual
Budgeted
Sales-mix
(
) x
x
=
variance
Plain
(
) x
x
=
Chic
(
) x
x
=
Part 10
The total sales-mix variance is
.
Part 11
Now, calculate the individual-product sales-volume variances for June. Determine the formula, and then calculate the variance for each product. Label each variance as favourable (F) or unfavourable (U).
Part 12Part 13
Sales-volume
(
) x
=
variance
Plain
(
) x
=
Chic
(
) x
=
Part 14
The total sales-volume variance is
.
Part 15
Requirement 3. Briefly describe the conclusions you can draw from the variances.
Kazu Corporation shows a(n)
favourable
unfavourable
sales-quantity variance because it sold
fewer
more
wine glasses in total than was budgeted. This is partially offset by a(n)
favourable
unfavourable
sales-mix variance because the actual mix of wine glasses sold has shifted in favour of the higher-contribution-margin
Chic
Plain
wine glasses.
The sales-mix percentage of Plain wine glasses is%.The sales-mix percentage of Chic wine glasses is%.The actual number of all glasses sold isunits.Kazu Corporation shows a(n)sales-quantity variance because it soldsales-quantity variance because it soldwine glasses in total than was budgeted.This is partially offset by a(n)sales-mix variance because the actual mix of wine glasses sold has shifted in favour of the higher-contribution-marginsales-mix variance because the actual mix of wine glasses sold has shifted in favour of the higher-contribution-marginwine glasses.
pop-up content starts
Sales information
Static-budget total contribution margin
$14,720
Budgeted units to be sold of all glasses
2,300 units
Budgeted contribution margin per unit of Plain
$5 per unit
Budgeted contribution margin per unit of Chic
$12 per unit
Total sales-quantity variance
$3,840 U
Actual sales-mix percentage of Plain
60%
pop-up content ends

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