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

The budgeted contribution margin per composite unit for the budgeted sales mix can be computed by dividing the ________.

A financial analyst for Simon Manufacturing prepared the following report: Which of the following conclusions can be drawn from the report?

Capity Tea Products has an exclusive contract with British Distributors.Calamine and Capity are two brands of teas that are imported and sold to retail outlets.The following information is provided for the month of March: Budgeted and actual fixed corporate-sustaining costs are $1,850 and $2,300,respectively. For the contribution margin,what is the total static-budget variance?

For each cost pool listed select an appropriate allocation base from the list below.An allocation base may be used only once.Assume a manufacturing company. Allocation bases for which the information system can provide data: 1.Number of employees per department 2.Employee wages and salaries per department 3.Number of sales orders 4.Hours of operation of each production department 5.Machine hours by department 6.Operations costs of each department 7.Hours of computer use per month per department 8.Number of units sold Cost pools:

An activity-based costing system may focus on customers rather than products.

Blue States Coffee,Inc. ,sells two types of coffee,Colombian and Blue Mountain.The monthly budget for U.S.coffee sales is based on a combination of last year's performance,a forecast of industry sales,and the company's expected share of the U.S.market.The following information is provided for March: Budgeted and actual fixed corporate-sustaining costs are $60,000 and $72,000,respectively. Required: a.Calculate the actual contribution margin for the month. b.Calculate the contribution margin for the static budget. c.Calculate the contribution margin for the flexible budget. d.Determine the total static-budget variance,the total flexible-budget variance,and the total sales-volume variance in terms of the contribution margin.

The Corata Appliance Manufacturing Corporation manufactures two vacuum cleaners,the Standard and the Super.The following information was gathered about the two products: What is the total sales-volume variance in terms of the contribution margin?

Which of the following classifications would be the most appropriate for the cost of the manager of a retail distribution channel?

The flexible-budget variance is the difference between an actual result and the flexible-budget amount based on the level of output actually achieved in the budget period.

Which of the following classifications would the cost of visiting customers would most likely fit into?

In general,distribution-channel costs are more easily influenced by customer actions than customer batch-level costs.

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 2017 were as follows: What is the total sales-quantity variance in terms of the contribution margin? (Round any intermediary calculations two decimal places. )

An unfavorable sales-mix variance would most likely be caused by which of the following?

Discontinuing an unprofitable customer should be solely done on the basis of profitability.

The sales-quantity variance can be decomposed into ________.

To reduce distribution-channel costs,a company could ________.

Explain the importance of customer-profitability analysis.

Companies that want to calculate the full cost of products must allocate all corporate costs to divisions.

A customer cost hierarchy may include distribution-channel costs.

Should a company allocate its corporate costs to divisions?