Question

The Hiro Corporation sells two brands of wine glasses: Plain and Chic. Hiro provides the following information for sales in the month of June 2014:
Static-budget total contribution margin ....... $ 15,525
Budgeted units to be sold of all glasses .......2,300 units
Budgeted contribution margin per unit of Plain....$ 5 per unit
Budgeted contribution margin per unit of Chic......$ 12 per unit
Total sales-quantity variance............$ 2,700 U
Actual sales-mix percentage of Plain...........60%
All variances are to be computed in contribution-margin terms.

Required
1. Calculate the sales-quantity variances for each product for June 2014.
2. Calculate the individual-product and total sales-mix variances for June 2014. Calculate the individual-product and total sales-volume variances for June 2014.
3. Briefly describe the conclusions you can draw from the variances.



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  • CreatedMay 14, 2014
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