Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Springwater Brewery has two main products: premium and regular ale. Its operating results and master budget for 20XX (000s omitted) follow: Operating Results of 20XX

Springwater Brewery has two main products: premium and regular ale. Its operating results and master budget for 20XX (000s omitted) follow:

Operating Results of 20XX Master Budget for 20XX
Premium Regular Total Premium Regular Total
Barrels 210 630 840 260 390 650
Sales $ 33,600 $ 72,450 $ 106,050 $ 39,000 $ 46,800 $ 85,800
Variable expenses 16,800 47,250 64,050 20,800 29,250 50,050
Contribution margin $ 16,800 $ 25,200 $ 42,000 $ 18,200 $ 17,550 $ 35,750
Fixed expenses 11,000 5,000 16,000 11,000 5,000 16,000
Operating income $ 5,800 $ 20,200 $ 26,000 $ 7,200 $ 12,550 $ 19,750

Pam Kuder, CEO, expected the total industry sales to be 1,625,000 barrels during the period. After the year, Mark Goldfeder, the controller, reported that the total sales for the industry were 1,680,000 barrels.

1. Market size variance for the period.

2. Market share variance for the period.

3. The sum of the market size variance and market share variance. Also, verify that this total equals the sales quantity variance.

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_2

Step: 3

blur-text-image_3

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

Accounting Theory Contemporary Accounting Issues

Authors: Thomas G. Evans

1st Edition

0324107846, 9780324107845

More Books

Students also viewed these Accounting questions

Question

What do you need to know about your students to motivate them?

Answered: 1 week ago