Question
The Chair company manufactures two modular types of chairs, one for the residential market, and the other for the office market. Budgeted and actual operating
The Chair company manufactures two modular types of chairs, one for the residential market, and the other for the office market. Budgeted and actual operating data for the year 2015 are:
| Static Budget | |||
| Residential | Office | Total | |
| Number of Chairs | 260 | 140 | 400 |
| Contribution margin | $26,000 | $11,200 | $37,200 |
| Actual Results | |||
| Residential | Office | Total | |
| Number of Chairs | 252 | 168 | 420 |
| Contribution Margin | $22,356 | $13,248 | $35,604 |
a. Compute the total static budget variance, the total flexible-budget variance and the total sales-volume variance.
b. Compute the sales-mix variance and the sales-quantity variance.
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Managerial Accounting
Authors: Carl S. Warren, James M. Reeve, Jonathan E. Duchac
10th Edition
B010IKDQZM
