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Tamarisk sells two types of fabric that are used interchangeably in the production of lawn chairs. The following information about each fabric is available: Standard
Tamarisk sells two types of fabric that are used interchangeably in the production of lawn chairs. The following information about each fabric is available:
Standard Contribution Margin | Standard Volume | Actual Contribution Margin | Actual Volume | |||||
Fabric A | $1.84/metre | 45,200 metres | $1.89/metre | 40,700 metres | ||||
Fabric B | $5.00/metre | 9,040 metres | $4.74/metre | 10,840 metres |
Actual Units Sold x Actual Sales Mix % x Standard CM | Sales Mix Variance | Actual Units Sold x Standard Sales Mix % x Standard CM | ||
Fabric A $ 74888 4140U 79028 Fabric B $ 54200 11250F 42950 |
Calculate the contribution margin sales quantity variance.
Margin Sales Quantity Variance
Fabric A $_____________ (Favourable/unfavourable/Neither)
Fabric B $____________ (Favourable/unfavourable/Neither)
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