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

Zeller Company had two products named Q and R.The firm had the following budget for the period just ended: Required: (A) Calculate the contribution margin sales volume variance for Product Q. (B) Calculate the contribution margin sales volume variance for Product R. (C) Calculate the sales mix variance for Product Q. (D) Calculate the sales quantity variance for Product Q. (E) Calculate the sales mix variance for Product R. (F) Calculate the sales quantity variance for Product R.

Hollaway Corp. has the following data for the current fiscal year:The contribution margin sales volume variance is:

Winston Co. had two products code named X and Y. The firm had the following budget for August: Product X Product Y Total Sales \ 286,000 \ 520,000 \ 806,000 Variable Costs 189,800 218,400 408,200 Contribution Margin \ 96,200 \ 301,600 \ 397,800 Fixed costs 50,000 108,000 158,000 Operating Income \4 6,200 \1 93,600 \2 39,800 Selling Price per unit \1 10.00 \5 0.00 $\text { On September 1, the following actual operating results for August were reported: }$ Product X Product Y Total Sales \ 360,000 \ 540,000 \ 900,000 Variable Costs 195,000 216,000 411,000 Contribution Margin \ 165,000 \ 324,000 \ 489,000 Fixed costs 50,000 108,000 158,000 Operating Income \1 15,00 \2 16,000 \3 31,000 Units Sold 3,000 9,000 Total industry volume for both products X and Y was estimated to be 130,000 units at the time of the budget. Actual industry volume for the period for products X and Y was 100,000 units. The contribution margin sales volume variance for Product X is:

The sales mix variance for a firm is ultimately expressed in terms of:

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 firm's total sales mix 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 X is:

Gutsen Communications Inc. manufactures a scrambling device for cellular phones. The main component of the scrambling device is a very delicate part—DTV-12. DTV-12 requires careful handlings during manufacturing. Once damaged, the part must be discarded. Only skilled laborers are hired to manufacture and install DTV-12. Damages still occur, however. The following are the operating data of Gutsen Communications Inc. for 2018 and 2019 relative to the insertion of DTV-12. Round calculations to 2 significant digits. 2018 2019 Number of phones manufactured 600,000 780,000 Units of DTV-12 used 960,000 1,072,500 Direct labor hours for DTV-12 insertion 1,800 2,600 Total cost of DTV-12 units \ 1,443,750 \ 2,333,750 Direct labor wage rate per hour \6 7 \8 2 The partial direct labor financial productivity ratio for 2018 is:

Jackson, Inc., manufactures two products that it sells to the same market. Excerpted below are its budgeted and actual operating results for the year just completed: Industry volume was estimated to be 1,875,000 units at the time the budget was prepared. Actual industry volume for the period was 2,440,000 units. Jackson measures variances using contribution margin. The total selling price variance of the period is:

Wheat Inc. has an exclusive contract with an exporter. Two brands of wheat are imported, labeled AB and CD. The following data are provided for the current fiscal year: The total market was estimated to 40,000 bushels at the time of budget. The actual total market for the year is 32,000 bushels. What is the firm's total sales mix variance?

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 share variance?

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. In 2019, the partial financial productivity of Material A is:

Folsom Fashions sells a line of women's dresses. The company uses flexible budgets to analyze its performances. The firm's performance report for November is presented below:The effect of the sales volume variance on November's contribution margin is:

Winston Co. had two products code named X and Y. The firm had the following budget for August: Product X Product Y Total Sales \ 286,000 \ 520,000 \ 806,000 Variable Costs 189,800 218,400 408,200 Contribution Margin \ 96,200 \ 301,600 \ 397,800 Fixed costs 50,000 108,000 158,000 Operating Income \4 6,200 \1 93,600 \2 39,800 Selling Price per unit \1 10.00 \5 0.00 $\text { On September 1, the following actual operating results for August were reported: }$ Product X Product Y Total Sales \ 360,000 \ 540,000 \ 900,000 Variable Costs 195,000 216,000 411,000 Contribution Margin \ 165,000 \ 324,000 \ 489,000 Fixed costs 50,000 108,000 158,000 Operating Income \1 15,00 \2 16,000 \3 31,000 Units Sold 3,000 9,000 Total industry volume for both products X and Y was estimated to be 130,000 units at the time of the budget. Actual industry volume for the period for products X and Y was 100,000 units. The sales quantity variance for Product X is:

A partial operational productivity measure: