The sales quantity variance would be favorable when a company sells:

A$)$ relatively fewer of the products bearing contribution margins lower than average.

B$)$ relatively more of the products bearing contribution margins higher than average.

C$)$ more total units than budgeted, holding the sales mix constant.

D$)$ fewer total units than budgeted, holding the sales mix constant.

Problems

Everglades Furniture uses a process cost system to account for its chair factory. Beginning

inventory consisted of $5,000$ units $(100\%$ complete as to material, $55\%$ complete as to labor$)$

with a cost of $$124,800$ materials and $$104,500$ conversion. $58,000$ units were started into

production during the month with material costs of $$1,537,000$ and $$2,124,375$ of conversion

costs. The ending inventory of $6,000$ chairs was $100\%$ complete as to materials and $40\%$

complete as to labor. Everglades uses weighted$-$average costing.

Required: $($HINT: use $4$ decimal places in your calculations$)$

a$.$ Compute the equivalent units of production for each input.

b$.$ Compute the cost per unit.

c$.$ Compute the cost transferred out to finished goods.

d$.$ Compute the ending work$-$in$-$process inventory balance.