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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
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 contributionmargin terms.
Required
Calculate the salesquantity variances for each product for June.
Calculate the individualproduct and total salesmix variances for June. Calculate the individualproduct and total salesvolume variances for June.
Briefly describe the conclusions you can draw from the variances.
Question content area bottom
Part
Requirement Calculate the salesquantity variances for each product for June.
Begin by determining the basic formula for Kazu Corporation's staticbudget total contribution margin CM
Plain wine glasses
Chic wine glasses
Budgeted
Budgeted
Budgeted
Budgeted
Budgeted
Budgeted
Staticbudget
x
x
x
x
total CM
Part
Rearrange the formula to determine the sales mix for each product.
The salesmix percentage of Plain wine glasses is
enter your response here
Part
The salesmix percentage of Chic wine glasses is
enter your response here
Part
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
The actual number of all glasses sold is
enter your response here units.
Part
Now, determine the formula, and then calculate the salesquantity variances for each product for June. Label each variance as favourable F or unfavourable UEnter percentages, if any, as decimals rounded to two places, XXX
Budgeted
Actual
Budgeted
Budgeted
Salesquantity
x
x
variance
Plain
x
x
Chic
x
x
Part
Requirement Calculate the individualproduct and total salesmix variances for June. Calculate the individualproduct and total salesvolume variances for June.
Begin with the individualproduct salesmix variances for June. Determine the formula, and then calculate the variance for each product. Label each variance as favourable F or unfavourable UEnter percentages, if any, as decimals rounded to two places, XXX
Part Part
Actual
Budgeted
Actual
Budgeted
Salesmix
x
x
variance
Plain
x
x
Chic
x
x
Part
The total salesmix variance is
Part
Now, calculate the individualproduct salesvolume variances for June. Determine the formula, and then calculate the variance for each product. Label each variance as favourable F or unfavourable U
Part Part
Salesvolume
x
variance
Plain
x
Chic
x
Part
The total salesvolume variance is
Part
Requirement Briefly describe the conclusions you can draw from the variances.
Kazu Corporation shows an
favourable
unfavourable
salesquantity variance because it sold
fewer
more
wine glasses in total than was budgeted. This is partially offset by an
favourable
unfavourable
salesmix variance because the actual mix of wine glasses sold has shifted in favour of the highercontributionmargin
Chic
Plain
wine glasses.
The salesmix percentage of Plain wine glasses isThe salesmix percentage of Chic wine glasses isThe actual number of all glasses sold isunits.Kazu Corporation shows ansalesquantity variance because it soldsalesquantity variance because it soldwine glasses in total than was budgeted.This is partially offset by ansalesmix variance because the actual mix of wine glasses sold has shifted in favour of the highercontributionmarginsalesmix variance because the actual mix of wine glasses sold has shifted in favour of the highercontributionmarginwine glasses.
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Sales information
Staticbudget total contribution margin
$
Budgeted units to be sold of all glasses
units
Budgeted contribution margin per unit of Plain
$ per unit
Budgeted contribution margin per unit of Chic
$ per unit
Total salesquantity variance
$ U
Actual salesmix percentage of Plain
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