The Chair Company manufactures chairs. Budgeted and actual operating data for the

past year are:

Static Budget Actual Results

Home Home Office

Number of chairs sold $260,000248,400$

Contribution margin $$26,000,000$ $$22,356,000$

The industry volume for chairs of the type sold by the Chair company had been

estimated at $2,600,000.$ Actual industry volume for the year was $2,200,000$ chairs.

REQUIRED:

a$.$ Compute the sale$-$mix variance and the sales$-$ quantity variance by type of chair, and

in total. $(5$ points$)$

b$.$ Compute the market$-$share variance and market$-$size variances. $($Calculate actual

and budgeted market share percentages to two decimal places.$)(6$ points$)$