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

The sales-mix variance is the difference between budgeted contribution margin for the actual sales mix and the budgeted contribution margin for the budgeted sales mix.

Woodruff Flowering Plants provides the following information for the month of May: What is the budgeted contribution margin per composite unit for the actual mix? (Round any intermediary calculations two decimal places. )

A customer cost hierarchy may include customer-sustaining costs.

Flexible budget contribution margin is equal to ________.

Archoid's Flowering Plants provides the following information for the month of May: What is the budgeted contribution margin per composite unit for the budgeted mix? (Round any intermediary calculations two decimal places. )

When there is a lesser degree of homogeneity,fewer cost pools are required to accurately explain the use of company resources.

When using the cause-and-effect criterion,cost drivers are selected as the cost allocation bases.

The static-budget variance is the difference between an actual result and the corresponding budgeted amount in the static budget.

The ability-to-bear criterion is considered superior when the purpose of cost allocation is motivation.

The sales-mix variance is calculated by ________.

Which of the following is a corporate-sustaining cost?

Which of the following classifications would costs incurred to handle each unit sold fit into?

When individual activities within a cost pool have a similar relationship with the cost driver,which of the following could be said about the cost pool?

Which of the following is true about the process of making cost allocations?

Tracking price discounts by customer and by salesperson helps improve customer profitability.

When corporate-sustaining costs are fully allocated to distribution channels,then the sum of the operating income from each distribution-channel is ________.

A customer cost hierarchy categorizes costs related to customers into different cost pools on the basis of different cost drivers.

Costs in a homogeneous cost pools have the same or a similar cause-and-effect or benefits-received relationship with the cost-allocation base.

The Octova Corporation manufactures two types of vacuum cleaners: the ZENITH for commercial building use and the House-Helper for residences.Budgeted and actual operating data for the year 2017 are as follows: Required: Compute the sales-mix variance and the sales-quantity variance by type of vacuum cleaner,and in total.(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 budgeted sales-mix percentage for the Standard and the Super vacuum cleaners,respectively?