Question 4: Further Aspects of Budgeting and Variance Analysis

Extrode limited produces and sales verities of sports drinks: Aquarode, Powerode and Staminode. Budgeted and actual data for April 2020 - September 2020 (6 months) are as follows: Product Budget for April-September 2020 Actual for April - September 2020 Selling price Variable Boxed sold Selling price Variable Boxed sold per box cost per box per box cost per box Aquarode $12.00 $8.00 25,000 $12.40 $9.00 20,000 Powerode $8.00 $5.60 50,000 $7.50 $5.50 60,000 Staminode $14.00 $9.00 75,000 $13.60 $9.20 60,000 Extorde Limited's marketing manager, Paula Harris, prepared her 6-months budget at the beginning of April assuming a 10% market share based on total sales. The total sports drink market was estimated to reach sales of 1.30 million boxes, however, actual sales volume was 1.0 million boxes