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

Which one of the following is the result of the [(units sold)x (actual selling price per unit)] - [(units sold)x (budgeted selling price per unit)]:

Decreasing selling prices in order to secure higher sales volumes or market shares:

Winston Co.had two products code named X and Y.The firm had the following budget for August: On September 1,the following operating results for August were reported: Industry volume was estimated to be 120,000 units at the time of the budget.Actual industry volume for the period was 125,000 units. The weighted-average budgeted contribution margin per unit is:

Winston Co.had two products code named X and Y.The firm had the following budget for August: On September 1,the following operating results for August were reported: Industry volume was estimated to be 120,000 units at the time of the budget.Actual industry volume for the period was 125,000 units. The contribution margin sales volume variance for Product X 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:

Broha Company manufactured 1,500 units of its only product during 2011.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 2010 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 The total productivity ratio in 2010 is:

Winston Co.had two products code named X and Y.The firm had the following budget for August: On September 1,the following operating results for August were reported: Industry volume was estimated to be 120,000 units at the time of the budget.Actual industry volume for the period was 125,000 units. The sales mix variance for Product Y is:

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

Weighted-average budgeted contribution margin per unit is:

Duo,Inc.carries two products and has the following year-end income statement (000s omitted): The sales quantity variance that would complement the variance calculated in the previous question is:

Nap Co.has two products named X and Y.The firm had the following master budget for the year just completed: The following operating results were reported after the year was over: The contribution margin sales volume variance for Product X 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 market size variance?

Winston Co.had two products code named X and Y.The firm had the following budget for August: On September 1,the following operating results for August were reported: Industry volume was estimated to be 120,000 units at the time of the budget.Actual industry volume for the period was 125,000 units. The firm's total sales quantity variance for the period 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 handling 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 2010 and 2011 relative to the insertion of DTV-12.Round calculations to two significant digits. The partial direct labor financial productivity ratio for 2010 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.Total sales quantity variance 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 the firm's total sales mix variance?

Broha Company manufactured 1,500 units of its only product during 2011.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 2010 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 In 2011,the partial financial productivity of Material H is: (round all calculations to two significant digits)

The sales quantity variance of a firm arises when the:

Winston Co.had two products code named X and Y.The firm had the following budget for August: On September 1,the following operating results for August were reported: Industry volume was estimated to be 120,000 units at the time of the budget.Actual industry volume for the period was 125,000 units. The sales quantity variance for Product Y is:

Winston Co.had two products code named X and Y.The firm had the following budget for August: On September 1,the following operating results for August were reported: Industry volume was estimated to be 120,000 units at the time of the budget.Actual industry volume for the period was 125,000 units. The selling price variance for Product Y is: