Question
The following is the realization of the data and budget for the year 20x1 for the products sold by PT Dunia Silat: Budget Actual Variance
The following is the realization of the data and budget for the year 20x1 for the products sold by PT Dunia Silat: Budget Actual Variance Total Sales (units) 40,000 38,000 3,000 income IDR 4,800,000,000 IDR 4,256,000,000 Rp 544,000,000 Cost of Goods Sold 3,200,000,000 3,034,000,000 166,000,000 Gross Profit 1,600,000,000 1,222,000,000 378,000,000 Unallocated Costs: Sales Costs 300,000,000 300,000,000 - Advertising Costs 300,000,000 330,000,000 ( 30,000,000) Administration Fee 200,000,000 203,000,000 (3,000,000) Income Tax (45%) 360,000,000 175,050,000 184,950,000 Total Cost allocated 1,160,000,000 1,008,050,000 151,950,000 Net Profit Rp 440,000. 000 IDR 213.950.000 IDR 226.05000 The 20x1 budget is prepared at the end of 20x0, based on the estimated market share for both types of products. PT Dunia Silat estimates that the selling price is Rp. 120,000. In the first quarter of 20x1, management estimated that the actual market share for both products was 10% lower than the initial estimate which was used as an assumption in the budgeting process. To prevent a decrease in unit sales in line with the decrease in the estimated market share, the management implemented a marketing program that includes discounts for dealers and increased advertising. Requested: a. Calculate Sales-price variance (2.5%) and Sales-volume variance (2.5%) b. Interpret the results of your calculations in point a, and relate them to the implementation of the marketing program carried out by PT Dunia Silat (2.5%) c. In your opinion, has the marketing program been successful (2.5%)
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