Answer the following questions using the information below: The Fortise Corporation manufactures two types of vacuum cleaners, the Victor for commercial building use and the House-Mate for residences. Budgeted and actual operating data for the year 2015 were as follows: \[\begin{array}{l} \begin{array} { l r r r } \text { Static Budget } & \text { Victor } & \text { House-Mate } & \text { Total } \\ \hline \text { Number sold } & 6,000 & 24,000 & 30,000\\ \text { Contribution margin } &\$ 1,560,000 & \$ 3,120,000 &\$ 4,680,000\\\\ \text { Actual Results } & \text { Victor } & \text { House-Mate } & \text { Total } \\ \text { Number sold } & 5,000 & 35,000 & 40,000 \\ \text { Contribution margin } & \$ 1,400,000 & \$ 4,130,000 & \$ 5,530,000 \end{array} \end{array}\] -What is the total sales-quantity variance in terms of the contribution margin?

A) $200,000 unfavorable B) $540,000 favorable C) $960,000 unfavorable D) $1,560,000 favorable A) $200,000 unfavorable B) $540,000 favorable C) $960,000 unfavorable D) $1,560,000 favorable

Exam 14: Cost Allocation, customer-Profitability Analysis, and Sales-Variance Analysis

Managers who utilize customer profitability charts should drop customers that generate a negative customer operating income,since dropping an unprofitable customer will automatically cause overall income to increase.

(True/False)

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Question 161

Costs of activities to sell each unit to a customer is an example of ________.

(Multiple Choice)

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Question 162

Answer the following questions using the information below: The Fortise Corporation manufactures two types of vacuum cleaners, the Victor for commercial building use and the House-Mate for residences. Budgeted and actual operating data for the year 2015 were as follows: Static Budget Victor House-Mate Total Number sold 6,000 24,000 30,000 Contribution margin \ 1,560,000 \ 3,120,000 \ 4,680,000 Actual Results Victor House-Mate Total Number sold 5,000 35,000 40,000 Contribution margin \ 1,400,000 \ 4,130,000 \ 5,530,000 -What is the total sales-quantity variance in terms of the contribution margin?

(Multiple Choice)

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Question 163

A customer cost hierarchy may include customer-sustaining costs.

(True/False)

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Question 164

A challenge to using cost-benefit criteria for allocating costs is that ________.

(Multiple Choice)

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Question 165

Salary of top management and general-administration costs is an example of ________.

(Multiple Choice)

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Question 166

The sales-mix variance is calculated by ________.

(Multiple Choice)

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Question 167

Showing 161 - 167 of 167

Managers who utilize customer profitability charts should drop customers that generate a negative customer operating income,since dropping an unprofitable customer will automatically cause overall income to increase.

Costs of activities to sell each unit to a customer is an example of ________.

A customer cost hierarchy may include customer-sustaining costs.

A challenge to using cost-benefit criteria for allocating costs is that ________.

Salary of top management and general-administration costs is an example of ________.

The sales-mix variance is calculated by ________.

The Manager and Management Accounting

An Introduction to Cost Terms and Purposes

Cost-Volume-Profit Analysis

Job Costing

Activity-Based Costing and Activity-Based Management

Master Budget and Responsibility Accounting

Flexible Budgets, direct-Cost Variances, and Management Control

Flexible Budgets, overhead Cost Variances, and Management Control

Inventory Costing and Capacity Analysis

Determining How Costs Behave

Decision Making and Relevant Information

Strategy, balanced Scorecard, and Strategic Profitability Analysis

Pricing Decisions and Cost Management

Allocation of Support-Department Costs, common Costs, and Revenues

Cost Allocation: Joint Products and Byproducts

Process Costing

Spoilage, rework, and Scrap

Balanced Scorecard: Quality and Time

Inventory Management, just-In-Time, and Simplified Costing Methods

Capital Budgeting and Cost Analysis

Management Control Systems, transfer Pricing, and Multinational Considerations

Performance Measurement, compensation, and Multinational Considerations

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