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The Chair Company manufactures two modular types of chairs: one for the home market, and the other for the office market. Budgeted and actual
The Chair Company manufactures two modular types of chairs: one for the home market, and the other for the office market. Budgeted and actual operating data for the past year are: Actual Results Home 248,400 Static Budget Home Office Number of chairs sold Contribution margin 260,000 $26,000,000 140,000 $11,200,000 Office 165,600 $22,356,000 $13,248,000 The industry volume for home and office chairs of the type sold by the Chair company had been estimated at 2,400,000. 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.) (5 points)
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a Sales Mix and Quantity Variances 1 Contribution Margin per Unit Home26000000 260000 chairs 100 per chair Office 11200000 140000 chairs 80 per chair ...Get Instant Access to Expert-Tailored Solutions
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