The Octova 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 2017 are as follows:

Static Budget Zenith House-Helper Total

Number sold 20,000 80,000 100,000

Contribution margin $4,600,000 $15,200,000 $19,800,000

Actual Results Zenith House-Helper Total

Number sold 21,500 64,500 86,000

Contribution margin $6,665,000 $14,190,000 $20,855,000

Computer the variances below in terms of contribution margin $. Indicate whether the variance is favorable or unfavorable.

a. Compute total sales-volume variance:

b. Compute the sales-mix variance by type of vacuum cleaner and in total.

Zenith:

House Helper:

Total:

c. Compute the sales-quantity variance by type of vacuum cleaner and in total.

Zenith:

House Helper:

Total: