Solution-Calculate the sales mix variance

Calculate the sales mix variance

Reference no: EM13337234

Problem 1:

The following is the current variable costing income statement for Dolly Corporation.

Sales (5,000 units)		$100,000
Variable expenses Cost of goods sold	$35,000
Selling (10% of sales)	$10,000	$45,000
Contribution margin		$55,000
Fixed expenses
Manufacturing overhead	$24,000
Administrative	$12,500	$36,500
Operating income		$18,500

Below is the following information on operations for Dolly Corporation.

Beginning inventory (units)	0
Units produced (units)	6,000
Manufacturing costs
Direct labor (per unit)	$5.00
Direct materials (per unit)	$2.30
Variable overhead (per unit)	$2.40

Required:
Prepare an absorption costing income statement.

Problem 2:

The following information was compiled for two models of cell phones.

	3G model	4G model	Average
Budgeted Contribution Margin	$80.00	$120.00	$95.25
Budgeted Sales in Units	28,000	18,000
Actual Sales in Units	28,600	16,500

Required:

Calculate the sales mix variance.

Reference no: EM13337234

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Calculate the sales mix variance

Reference no: EM13337234

Reference no: EM13337234

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