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55.
The Morton Company gathered the following information for the year.
Product
K
Product
R
Total
Budgeted sales mix
(units)
40%
60%
100%
Budgeted and
actual sales price
$48
$36
Budgeted variable
cost per unit
$32
$24
Actual sales (units)
126,000
Actual sales mix
60%
40%
100%
Fixed costs
$80,000
56.
A machine distributor sells two models, basic and deluxe. The following information
relates to its master budget.
Basic
Deluxe
Sales (units)
8,000
2,000
Sales price per unit
$8,000
$12,000
Variable costs per unit
$6,400
$9,000
Actual sales were 7,000 basic models and 2,800 deluxe models. The actual sales prices
were the same as the budgeted sales prices for both models.
What is the sales activity variance for the basic model?
57.
A machine distributor sells two models, basic and deluxe. The following information
relates to its master budget.
Basic
Deluxe
Sales (units)
8,000
2,000
Sales price per unit
$8,000
$12,000
Variable costs per unit
$6,400
$9,000
Actual sales were 7,000 basic models and 2,800 deluxe models. The actual sales prices
were the same as the budgeted sales prices for both models.
Is the sales activity variance for the basic model favorable or unfavorable?
58.
A machine distributor sells two models, basic and deluxe. The following information
relates to its master budget.
Basic
Deluxe
Sales (units)
8,000
2,000
Sales price per unit
$8,000
$12,000
Variable costs per unit
$6,400
$9,000
Actual sales were 7,000 basic models and 2,800 deluxe models. The actual sales prices
were the same as the budgeted sales prices for both models.
What is the sales activity variance for the deluxe model?
59.
A machine distributor sells two models, basic and deluxe. The following information
relates to its master budget.
Basic
Deluxe
Sales (units)
8,000
2,000
Sales price per unit
$8,000
$12,000
Variable costs per unit
$6,400
$9,000
Actual sales were 7,000 basic models and 2,800 deluxe models. The actual sales prices
were the same as the budgeted sales prices for both models.
Is the sales activity variance for the deluxe model favorable or unfavorable?
60.
A machine distributor sells two models, basic and deluxe. The following information
relates to its master budget.
Basic
Deluxe
Sales (units)
8,000
2,000
Sales price per unit
$8,000
$12,000
Variable costs per unit
$6,400
$9,000
Actual sales were 7,000 basic models and 2,800 deluxe models. The actual sales prices
were the same as the budgeted sales prices for both models.
What is the sales mix variance for the basic model?
61.
A machine distributor sells two models, basic and deluxe. The following information
relates to its master budget.
Basic
Deluxe
Sales (units)
8,000
2,000
Sales price per unit
$8,000
$12,000
Variable costs per unit
$6,400
$9,000
Actual sales were 7,000 basic models and 2,800 deluxe models. The actual sales prices
were the same as the budgeted sales prices for both models.
Is the sales mix variance for the basic model favorable or unfavorable?
62.
A machine distributor sells two models, basic and deluxe. The following information
relates to its master budget.
Basic
Deluxe
Sales (units)
8,000
2,000
Sales price per unit
$8,000
$12,000
Variable costs per unit
$6,400
$9,000
Actual sales were 7,000 basic models and 2,800 deluxe models. The actual sales prices
were the same as the budgeted sales prices for both models.
What is the sales quantity variance for the basic model?
63.
A machine distributor sells two models, basic and deluxe. The following information
relates to its master budget.
Basic
Deluxe
Sales (units)
8,000
2,000
Sales price per unit
$8,000
$12,000
Variable costs per unit
$6,400
$9,000
Actual sales were 7,000 basic models and 2,800 deluxe models. The actual sales prices
were the same as the budgeted sales prices for both models.
Is the sales quantity variance for the basic model favorable or unfavorable?
64.
A machine distributor sells two models, basic and deluxe. The following information
relates to its master budget.
Basic
Deluxe
Sales (units)
8,000
2,000
Sales price per unit
$8,000
$12,000
Variable costs per unit
$6,400
$9,000
Actual sales were 7,000 basic models and 2,800 deluxe models. The actual sales prices
were the same as the budgeted sales prices for both models.
What is the sales mix variance for the deluxe model based?
65.
A machine distributor sells two models, basic and deluxe. The following information
relates to its master budget.
Basic
Deluxe
Sales (units)
8,000
2,000
Sales price per unit
$8,000
$12,000
Variable costs per unit
$6,400
$9,000
Actual sales were 7,000 basic models and 2,800 deluxe models. The actual sales prices
were the same as the budgeted sales prices for both models.
Is the sales mix variance for the deluxe model favorable or unfavorable?
66.
A machine distributor sells two models, basic and deluxe. The following information
relates to its master budget.
Basic
Deluxe
Sales (units)
8,000
2,000
Sales price per unit
$8,000
$12,000
Variable costs per unit
$6,400
$9,000
Actual sales were 7,000 basic models and 2,800 deluxe models. The actual sales prices
were the same as the budgeted sales prices for both models.
What is the sales quantity variance for the deluxe model?
67.
A machine distributor sells two models, basic and deluxe. The following information
relates to its master budget.
Basic
Deluxe
Sales (units)
8,000
2,000
Sales price per unit
$8,000
$12,000
Variable costs per unit
$6,400
$9,000
Actual sales were 7,000 basic models and 2,800 deluxe models. The actual sales prices
were the same as the budgeted sales prices for both models.
Is the sales quantity variance for the basic model favorable or unfavorable?
68.
The Vargas Company had the following expectations for the year:
Total market for the product
175,000 units
XYZ’s budgeted sales
$1,763,125
Variable costs per unit
$18.75
Selling price per unit
$32.50
Actual results for the year were:
Total market for the product
166,250 units
XYZ’s actual sales
56,525
Total Variable costs
$1,073,975
Total sales
$1,752,275
69.
The Vargas Company had the following expectations for the year:
Total market for the product
175,000 units
XYZ’s budgeted sales
$1,763,125
Variable costs per unit
$18.75
Selling price per unit
$32.50
Actual results for the year were:
Total market for the product
166,250 units
XYZ’s actual sales
56,525
Total Variable costs
$1,073,975
Total sales
$1,752,275
17-56
70.
The next year's budget for Trend, Inc., a multi-product company, is given below:
Product A
Product B
Sales
$1,890,000
$1,377,000
Variable costs
926,100
596,700
Fixed costs
500,000
500,000
Net income
463,900
280,300
Units
252,000
108,000
At the end of the year, the total fixed costs and the variable costs per unit were exactly as
budgeted, but the following units per product line were sold. Trend, Inc. analyzes the
effects its sales variances have on the profitability of the company.
Product Lines
Units
Sales
A
253,230
$1,848,579
B
113,770
$1,479,010
What is the total sales price variance?
71.
The next year's budget for Trend, Inc., a multi-product company, is given below:
17-57
Product A
Product B
Sales
$1,890,000
$1,377,000
Variable costs
926,100
596,700
Fixed costs
500,000
500,000
Net income
463,900
280,300
Units
252,000
108,000
At the end of the year, the total fixed costs and the variable costs per unit were exactly as
budgeted, but the following units per product line were sold. Trend, Inc. analyzes the
effects its sales variances have on the profitability of the company.
Product Lines
Units
Sales
A
253,230
$1,848,579
B
113,770
$1,479,010
Is the total sales price variance favorable or unfavorable?
72.
The next year's budget for Trend, Inc., a multi-product company, is given below:
Product A
Product B
Sales
$1,890,000
$1,377,000
Variable costs
926,100
596,700
Fixed costs
500,000
500,000
Net income
463,900
280,300
Units
252,000
108,000
At the end of the year, the total fixed costs and the variable costs per unit were exactly as
budgeted, but the following units per product line were sold. Trend, Inc. analyzes the
effects its sales variances have on the profitability of the company.
Product Lines
Units
Sales
A
253,230
$1,848,579
B
113,770
$1,479,010
What is the total sales mix variance?
73.
The next year's budget for Trend, Inc., a multi-product company, is given below:
Product A
Product B
Sales
$1,890,000
$1,377,000
Variable costs
926,100
596,700
Fixed costs
500,000
500,000
Net income
463,900
280,300
Units
252,000
108,000
At the end of the year, the total fixed costs and the variable costs per unit were exactly as
budgeted, but the following units per product line were sold. Trend, Inc. analyzes the
effects its sales variances have on the profitability of the company.
Product Lines
Units
Sales
A
253,230
$1,848,579
B
113,770
$1,479,010
Is the total sales mix variance favorable or unfavorable?
74.
The next year's budget for Trend, Inc., a multi-product company, is given below:
Product A
Product B
Sales
$1,890,000
$1,377,000
Variable costs
926,100
596,700
Fixed costs
500,000
500,000
Net income
463,900
280,300
Units
252,000
108,000
At the end of the year, the total fixed costs and the variable costs per unit were exactly as
budgeted, but the following units per product line were sold. Trend, Inc. analyzes the
effects its sales variances have on the profitability of the company.
Product Lines
Units
Sales
A
253,230
$1,848,579
B
113,770
$1,479,010
What is the total sales quantity variance?
75.
The next year's budget for Trend, Inc., a multi-product company, is given below:
Product A
Product B
Sales
$1,890,000
$1,377,000
Variable costs
926,100
596,700
