Essay
The Chair Company manufactures two modular types of chairs: one for the residential market, and the other for the office market. Budgeted and actual operating data for the year 2015 are:
Required:
Compute the following variances in terms of contribution margin:
a.Compute the total static-budget variance, the total flexible-budget variance, and the total sales-volume variance.
b.Compute the sale-mix variance and the sales-quantity variance by type of chair, and in total.
Correct Answer:
Verified
Correct Answer:
Verified
Q148: What are the two components of the
Q149: Flexible-budget variance = $260,000 (F); sales-volume variance
Q150: Which cost-allocation criterion is most likely to
Q151: Allocation of corporate-sustaining costs is useful for
Q152: To guide cost allocation decisions, the benefits-received
Q154: The difference between budgeted contribution margin per
Q155: The static-budget variance is the difference between
Q156: To guide cost allocation decisions, the cause-and-effect
Q157: The sales-quantity variance will be favorable when
Q158: The chart used to express customer profitability