Compute the industry volume variance for each product, Cost Accounting

The next year's budget for Benny, Inc., is given below:

Product 1 & 2

Sales $945,000 & 688500
Variable costs 459,900 & 297,000
Fixed costs 300,000 & 300,000
Net income $185,100 & $91,500
Units 126,000 & 54,000
Market share 12% & 20.0%

At the end of the year, the total fixed costs and the variable costs per unit were exactly as budgeted, but the following units per product line were sold:

Product Line- Units- Sales- Mkt share
1- 126,200- $958,579- 16.0%
2- 56,800- $721,010- 14.2%

Required: (Be sure to indicate whether the variance is favorable or unfavorable.)
a. Compute the sales activity variance for each product.
b. Compute the market share variance for each product.
c. Compute the industry volume variance for each product.


Posted Date: 2/28/2014 9:59:01 PM | Location : United States

Related Discussions:- Compute the industry volume variance for each product, Assignment Help, Ask Question on Compute the industry volume variance for each product, Get Answer, Expert's Help, Compute the industry volume variance for each product Discussions

Write discussion on Compute the industry volume variance for each product
Your posts are moderated
Related Questions
Matheson Electronics' Canadian Branch will help introduce into Canada the just developed new electronic device which, when mounted on an automobile, will tell the driver how many m

On May 9th, David paid $34,500 (including sales tax) to purchase a used Audi A8 that he uses 90% of the time for business. No trade-in was involved. David uses the actual operating

need help with master budget

Determine Profit by Using Absorption Costing Assuming the fixed overhead absorption rate was Ksh.3 per litre, then what would be the profit utilizing absorption costing? a)

manufacturing costs will not include a. indirect material used b. sales salaries expense c. indirect labor costs d. depreciation of factory equipment

In Lowe's Companies, Inc. 2012 Annual Report (Form 10-K) 1. Evaluate Lowe's investment in property, plant and equipment. Determine the following amounts as reported by Lowe's on it

Purposes of Overhead Cost Analysis There are a number of situations whether the analysis of overhead costs will assist in the satisfactory evaluation of the relevant cost data

QUESTION 1: PART A Swatathon Inc. has two production departments (A and B) and two service departments (maintenance and stores). Details of next year's budgeted overheads

Discuss the advantages and disadvantages of designing an IC using VHDL and synthesis compared with the traditional design approach using schematic capture, simulation and layout.