Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The Corporation manufactures two types of vacuum cleaners, the Zenith for commercial building use and the House-Helper for residences. Budgeted and actual operating data for

The Corporation manufactures two types of vacuum cleaners, the Zenith for commercial building use and the House-Helper for residences. Budgeted and actual operating data for the year are: Static Budget Zenith House- Helper Total Number sold. 5,000. 20,000 25,000

Contribution margin. $1,500,000 $3,000,000$. 4,500,000

Actual Results Zenith House-Helper Total Number sold 4,000 28,000 32,000

Contribution margin $1,280,000 $3,920,000 $5,200,000

Prior to the beginning of the year, a consulting firm estimated the total industry volume for vacuum cleaners of the Zenith and House-Helper category to be 250,000 units. Actual industry volume was 256,000 units. What's the total sales-quantity variance in terms of the contribution margin? Please note this question is not asking for the sales-volume variance. Group of answer choices $900,000 F

$1,260,000 U

$1,260,000 F

$900,000 U

None of the other answers are correct

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

Step: 3

blur-text-image

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

Cornerstones Of Financial Accounting

Authors: Jay Rich, Jeff Jones

3rd Edition

1285424409, 978-1285423678

More Books

Students also viewed these Accounting questions