Afos Sofas Inc. produces two models of sofas: Standard and Deluxe. The expected total market sales of
Question:
Afos Sofas Inc. produces two models of sofas: Standard and Deluxe.
The expected total market sales of sofas were 250,000 sofas. The actual total market sales of sofas were 220,000 sofas.
Required:
A. Calculate the sales quantity variance.
B. Calculate the market size variance.
C. Explain why the budgeted operating income for Afos Sofas Inc. was less than expected.
Transcribed Image Text:
Budget Actual Standard Deluxe Standard Deluxe Selling price per unit $400 $900 $425 $850 Variable costs per unit $260 $670 $275 $685 Sales volume in units 4,000 6,000 6,800 4,200 Master Budget Actual Sales revenue $7,000,000 $6,460,000 Variable costs 5,060,000 4,747,000 Contribution margin 1,940,000 1,713,000 Fixed costs 867,500 938,500 Operating income $1,072,500 $ 774,500
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 77% (9 reviews)
A Sales quantity variance Actual sales volume at budgeted mix Budgeted volume Budgeted contribution ...View the full answer
Answered By
ANDREW KIPRUTO
Academic Writing Expert
I have over 7 years of research and application experience. I am trained and licensed to provide expertise in IT information, computer sciences related topics and other units like chemistry, Business, law, biology, biochemistry, and genetics. I'm a network and IT admin with +8 years of experience in all kind of environments.
I can help you in the following areas:
Networking
- Ethernet, Wireless Airmax and 802.11, fiber networks on GPON/GEPON and WDM
- Protocols and IP Services: VLANs, LACP, ACLs, VPNs, OSPF, BGP, RADIUS, PPPoE, DNS, Proxies, SNMP
- Vendors: MikroTik, Ubiquiti, Cisco, Juniper, HP, Dell, DrayTek, SMC, Zyxel, Furukawa Electric, and many more
- Monitoring Systems: PRTG, Zabbix, Whatsup Gold, TheDude, RRDtoo
Always available for new projects! Contact me for any inquiries
4.30+
1+ Reviews
10+ Question Solved
Related Book For
Cost Management Measuring, Monitoring and Motivating Performance
ISBN: 978-1119185697
3rd Canadian edition
Authors: Leslie G. Eldenburg, Susan K. Wolcott, Liang Hsuan Chen, Gail Cook
Question Posted:
Students also viewed these Managerial Accounting questions
-
Afos Sofas Inc. produces two models of sofas: Standard and Deluxe. Budget and actual data are as follows. The expected total market sales of sofas were 250,000 sofas. The actual total market sales of...
-
Slumber Cozy Inc. produces two models of beds: Regular and Majestic. Budget and actual data are as follows. The expected total market sales were 500,000 beds. The actual total market sales were...
-
Restco Beds Inc. produces two models of beds: Regular and Majestic. Budget and actual data were as follows: Market Data Expected total market sales of beds................................500,000 beds...
-
Given the definition of the radian angle: S l Where [s] = m, [4] = m What are the dimensions of angles? A. No way to know B. meters, m C. 1 (or no units/dimensions) D. seconds, S E. kilograms, kg
-
What does a falling euro mean for U.S. companies exporting to the European Union and for U.S. companies with operations in the bloc?
-
Three stirred-tanks in series are used in a reactor train (see Fig. E3.20). The flow rate into the system of some inert species is maintained constant while tracer tests are conducted. Assuming that...
-
The Chernobyl disaster was a catastrophic nuclear accident that occurred on April 26, 1986, at the Chernobyl Nuclear Power Plant in Ukraine, which was under the direct jurisdiction of the central...
-
The budget director of Birding Homes & Feeders Inc., with the assistance of the controller, treasurer, production manager, and sales manager, has gathered the following data for use in developing the...
-
K(s-2) (s-3) Find the jw-crossing for the negative unity feedback system where G(s) = s(s+2) (s+3) Fill in the a value:
-
As a new employee in a bicycle shop, you learn that customers will frequently seek advice regarding various types of bicycle repair. Bent or broken frames appear to be a common problem, and you learn...
-
Following is information about Natures Song direct labour hours and wages last period. Actual labour hours for guides at the standard price per...
-
Rainbow Bubbles managers expected to produce 30,000 units of product in March. Two materials are used to produce the bubble product: Material A is the soap that makes the bubbles and determines the...
-
Consider the equation 2KOH + H2SO4 K2SO4 + 2H2O a. If 25 g H2SO4 is reacted with 7.7 g KOH, how many grams of K2SO4 are produced? b. For part a of this problem, identify the limiting reactant and...
-
The data in CarDepreciation given in Exercise 3.93 contains information on both New price and Depreciation for a sample of 20 automobile models. (a) Find the correlation between New price and...
-
Students are offered three cooperative training programs at local companies and four training programs outside the state. Count the number of possible training opportunities if an opportunity...
-
You are required to choose a four digit personal identification number (PIN) for a new debit card. Each digit is selected from \(0,1, \ldots, 9\). How many choices do you have.
-
For each of the following experiments, decide whether it would be appropriate to use a sample space which is finite, countably infinite, or continuous. (a) A Geiger counter, located adjacent to a...
-
An Engineers Association consists of 5 civil engineers and 5 mechanical engineers. (a) In how many ways can a committee of 3 civil engineers and 2 mechanical engineers be appointed? (b) If 2 civil...
-
Give an example of a company that is using each of the three strategies.
-
A copper rod of length L =18.0 in is to be twisted by torques T (see figure) until the angle of rotation between the ends of the rod is 3.08. (a) If the allowable shear strain in the copper is 0.0006...
-
Why do you think some organizations choose to not perform job analyses given their benefits? What could be done to increase their willingness to analyze jobs?
-
How can job analysis make staffing more strategic?
-
Some jobs change so rapidly that companies do not feel doing a job analysis is worthwhile because by the time one is done, its already outdated. What advice would you give such a company to help them...
-
KORBIN COMPANY Comparative Income Statements For Years Ended December 31 2021 2020 $ 316,588 2019 $ 219,700 Sales Cost of goods sold Gross profit Selling expenses Administrative expenses Total...
-
Following are the capital account balances and profit and loss percentages (indicated parenthetically) for the Alden, Boyd, and Carmel partnership: Alden (40%) Boyd (40%) Carmel (20%) $ 220,000...
-
Required information E3-13 (Algo) Recording and Posting Accrual Basis Journal Entries, and Preparing an Unadjusted Trial Balance and Preliminary Financial Statements [LO 3-2, 3-3, LO 3-4] [The...
Study smarter with the SolutionInn App