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

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.If fixed costs are budgeted for $500,000 and are actually $500,000,what is the difference between budgeted and actual operating income?

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

An unfavorable sales mix variance arises for a product when the:

HQ Company had two products code named Q and R.The firm had the following budget for the period just ended:

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 operational productivity ratio for 2011 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 weighted-average budgeted contribution margin per unit 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?

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 partial operational productivity of Material A in 2010 is: (round all calculations to two significant digits)

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 total contribution margin sales volume variance?

Sales volume variances can have significant implications for strategic management.An unfavorable sales volume variance may indicate that:

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 operational productivity of Material H is: (round all calculations to two significant digits)

The experience of many firms is that improvements in quality:

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: What additional information would be needed for Folsom to calculate the dollar impact of changes in market share on November's operating income?

A firm with a declining market share percentage may still earn a higher operating income if the:

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:

Efforts to improve productivity should be focused only on:

What is the sales quantity variance for Spiders?

Erwin Co.provided the following information for a selected production factor: The actual operational partial productivity ratio of the production factor is (round to two significant digits):

TV Timers,Inc.manufactures time control devices for TV's.The firm has the following operating data for its operations in July: What is the company's market size 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 2010,the partial financial productivity of direct labor is: