Exam 16: Operational Performance Measurement: Further Analysis of Productivity and Sales

A selling price variance is:

When the actual sales-mix shifts toward a mix of products with lower contribution margins, there will be negative effects on a firm's:

Gourmet Aroma Coffee House has an exclusive contract with Columbia exporters. Two brands of gourmet coffee are imported, Morning Thunder (MT) and Evening Tender (ET). The following data are provided for the current fiscal year: The total market was estimated to be 80,000 pounds at the time of budget. The actual total market for the year is 75,000 pounds. What is the total contribution margin sales volume variance?

Creepers, Inc., manufactures stuffed spiders and mummies. During September the following information was gathered: Spiders Mummies Units sold 6,900 3,100 Budgeted sales (units) 7,500 2,500 Contribution margin per unit: Actual \ 3.75 \ 5.75 Budgeted \ 2.75 \ 5.25 What is the sales quantity variance for Spiders?

Which one of the following is a productivity measure that focuses on the relationship between only one of the inputs and the output attained?

The effect of changes in a product's proportion of the total market are measured by:

Productivity can be thought of as:

Lau & Lau, Ltd., of Hong Kong manufacture two products for the same market.Its budget and operating results for the year just completed follow: Budget Actual Unit of sales Product A 30,000 35,000 Product B 60,000 65,000 Contribution margin per unit Product A \ 4.00 \ 3.00 Product B 10.00 12.00 Selling price per unit Product A \ 10.00 \ 12.00 Product B 25.00 24.00 At the time of budget preparation, the budgeting department and sales department agreed that the industry volume for the year would likely be 1,500,000 units. Actual industry volume turned out to be 2,000,000 units. Required: (you may round fractions to three decimal places) 1. What is the average budgeted contribution margin per unit? 2. What is the sales volume contribution margin variance for each product? 3. What is the sales mix contribution margin variance for each product? 4. What is the sales quantity contribution margin variance for each product? 5. What is the market size contribution margin variance? 6. What is the market share contribution margin variance? 7. What is the total flexible budget contribution margin variance? 8. What is the total variable cost price variance if the total contribution margin price variance is $50,000 favorable? 9. What is the total variable cost efficiency variance if the total contribution margin price variance is $50,000 favorable?

The Tempest Company has the following information for the current year. The industry budget is 2 million units and the actual result for the industry is 2.5 million units. Required: 1.Compute the contribution margin sales mix variance for product X. 2.Compute the contribution margin sales mix variance for product Y. 3.Compute the contribution margin sales volume variance for product X. 4.Compute the contribution margin sales volume variance for product Y. 5.Compute the contribution margin sales quantity variance for product X. 6.Compute the contribution margin sales quantity variance for product Y. 7.Compute the market share variance for Tempest. 8.Computer the market size variance for Tempest.

A primary objective in measuring productivity is to improve operations either by using fewer inputs to produce the same output, or to produce:

Twitter Company manufactures a remote control device for home theaters. The following data were from the operating period just completed: Actual market size (units) 12,000 Budgeted market size (units) 11,000 Actual market share 15\% Budgeted market share 12\% Budgeted selling price per unit \ 60 Actual selling price per unit \ 55 Budgeted variable cost per unit \ 30 Actual variable cost per unit \ 18 What is the firm's market size variance?

Duo, Inc., carries two products and has the following year-end income statement (000s omitted):The net effect of AR-10's sales volume variance on profit is:

Gourmet Aroma Coffee House has an exclusive contract with Columbia exporters. Two brands of gourmet coffee are imported, Morning Thunder (MT) and Evening Tender (ET). The following data are provided for the current fiscal year:The total market was estimated to be 80,000 pounds at the time of budget. The actual total market for the year is 75,000 pounds. What is MT's contribution margin sales volume variance?

Nappon Co. has two products named X and Y. The firm had the following master budget for the year just completed: $\begin{array}{lrrr} & \text { Product X } & \text { Product Y } & \text { Total } \\\text { Sales } & \$ 260,000 & \$ 360,000 & \$ 620,000 \\\text { Variable Costs } & 156.000 & 180,000 & 336,000\\\text { Contribution Margin } & \$ 104,000 & \$ 180,000 & \$ 284,000 \\\text { Fixed costs } & 130,000 & 108,000 & 238,000\\\text { Operating Income (Loss) }&\$(26,000)&\$72,000&\$46,000\\\text { Selling Price per unit }&\$130.00&\$60.00\end{array}$ $\text { The following actual operating results were reported after the year was over: }$ $\begin{array}{lrrr} & \text { Product X } & \text { Product Y } & \text { Total } \\\text { Sales } & \$ 202,500 & \$ 467,500 & \$ 670,000 \\\text { Variable Costs } & 117.000 & 212,500 & 329,500\\\text { Contribution Margin } & \$ 85,500 & \$ 255,000 & \$ 340,500 \\\text { Fixed costs } & 140,000 & 108,000 & 248,000\\\text { Operating Income (Loss) } & \$(54,500) & \$ 147,000 & \$ 92,500\\\text { Units Sold } & 1,500 & 8,500\end{array}$ The contribution margin sales volume variance for Product Y is:

Nappon Co. has two products named X and Y. The firm had the following master budget for the year just completed: $\begin{array}{lrrr} & \text { Product X } & \text { Product Y } & \text { Total } \\\text { Sales } & \$ 260,000 & \$ 360,000 & \$ 620,000 \\\text { Variable Costs } & 156.000 & 180,000 & 336,000\\\text { Contribution Margin } & \$ 104,000 & \$ 180,000 & \$ 284,000 \\\text { Fixed costs } & 130,000 & 108,000 & 238,000\\\text { Operating Income (Loss) }&\$(26,000)&\$72,000&\$46,000\\\text { Selling Price per unit }&\$130.00&\$60.00\end{array}$ $\text { The following actual operating results were reported after the year was over: }$ $\begin{array}{lrrr} & \text { Product X } & \text { Product Y } & \text { Total } \\\text { Sales } & \$ 202,500 & \$ 467,500 & \$ 670,000 \\\text { Variable Costs } & 117.000 & 212,500 & 329,500\\\text { Contribution Margin } & \$ 85,500 & \$ 255,000 & \$ 340,500 \\\text { Fixed costs } & 140,000 & 108,000 & 248,000\\\text { Operating Income (Loss) } & \$(54,500) & \$ 147,000 & \$ 92,500\\\text { Units Sold } & 1,500 & 8,500\end{array}$ The selling price variance for Product X is:

Which one of the following measures the relationship between the output attained and the total input costs of all the required input resources?

Broha Company manufactured 1,500 units of its only product during 2019. The inputs for this production are as follows: 450 pounds of Material A at a cost of $1.50 per pound 300 pounds of Material H at a cost of $2.75 per pound 300 direct labor hours at $20 per hour The firm manufactured 1,800 units of the same product in 2018 with the following inputs: 500 pounds of Material A at a cost of $1.20 per pound 360 pounds of Material H at a cost of $2.50 per pound 400 direct labor hours at $18 per hour Round all calculations to 2 significant digits. The partial operational productivity of Material A in 2018 is:

The following information is for the Wetherby Company. 2019 2018 Units manufactured 60,000 54,000 Units of materials used 144,000 124,000 Number of labor hours used 200,000 180,000 Cost of materials per unit \ 40 \ 38 Direct labor wage rate per hour \ 50 \ 44 Required: 1. Compute the partial operational productivity measures for 2018 and 2019. 2. Compute the partial financial productivity ratios for 2018 and 2019. 3. Separate the changes of the partial financial productivity ratios from 2018 to 2019 into productivity change, input price change, and output change.

Hollaway Corp. has the following data for the current fiscal year: The total sales mix variance for both products is:

Gourmet Aroma Coffee House has an exclusive contract with Columbia exporters. Two brands of gourmet coffee are imported, Morning Thunder (MT) and Evening Tender (ET). The following data are provided for the current fiscal year:The total market was estimated to be 80,000 pounds at the time of budget. The actual total market for the year is 75,000 pounds. What is ET's sales mix variance?