Campar Industries, Inc., was a multidivisional firm whose several divisions competed in different countries. This case deals with variance analysis problems in several of the divisions.
ALPHA DIVISION
In its annual profit budget, Alpha Division budgeted product A's sales volume at 24,000 units. Product A's budgeted price was $72 per unit; its standard cost was $43 per unit. Actual sales of product A turned out to be $1,658,250 for a volume of 22,000 units.
Question
Determine Alpha Division's gross margin variances.
BETA DIVISION
Beta Division makes three products. Last month's budgeted and actual sales and margins for these products were as follows:

Question
Determine the gross margin mix, selling price, and sales volume variances. Calculate the net gross margin variance directly; then, as a check, see if it equals the sum of the three variance components you calculated individually.
GAMMA DIVISION
Gamma Division makes a product for which the standard raw materials cost per 100 pounds of finished product is shown below:

Because materials were not supposed to be spoiled during production, these standards included no waste allowance.
During June, actual raw materials usage and costs were:

Question
Calculate the raw materials variances for June, referring back to Chapter 20 if necessary. This problem contains a raw materials mix variance, analogous to the gross margin mix variance described in this chapter.
DELTA DIVISION
Delta Division makes two products, A and B. Both products use the same raw materials and are produced in the same factory by the same workforce. In preparing its annual statement of budgeted gross margin, Delta's management used the following assumptions:
The year's actual results were as follows:
1. 1,750 units of A were sold for a total of $533,750.
2. 3,250 units of B were sold for a total of $601,250.
3. Production totaled 1,800 units of A and 3,300 units of B.
4. 180,000 pounds of raw materials were purchased and used; their total cost was $330,480.
5. 9,450 hours of direct labor were worked at a total cost of $233,880.
6. Actual overhead costs were $320,000.

Questions
1. Do as detailed an analysis of variances as the data given permit.
2. Prepare a summary statement for presentation to Delta's top management showing the year's budgeted and actual gross margin and an explanation of the difference between them.

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Budget Actual Unit Unit Unit Unit Sales Margin Sales Margin Product 1 3,200 $12.00 2,850 $12.24 Product 2 1,700 15.60 2,500 15.10 Product 35,100 10.80 4,250 10.56 10,000 $12.00 9,600 $12.24 60 lbs. of material X@51.69/lb 40 lbs. of material Y@ $2.34/lb. 100 lbs. $101.40 93.60 $195.00 of materials with total cost Material X: Used 5,500 lbs. $1.69/lb. 9,295 Material Y: Used 4,500 lbs. $2.53/b.11,385 10,000 lbs. $20,680 Actual finished product: 9,900 lbs. Products Sales (units) Unit selling price Standard unit costs: 1,900 $300.00 3,100 $185.00 Raw materials(@$1.80/lb.) Direct labor ( $25.00/hr.) Overhead (@ 120% of DLS) 72.00 62.50 75.00 54.00 S 37.50 S 45.00 Other production standards: Production volume (units) 1,900 3,100 Overhead budget: $0.80 per DLS plus $94,000 fixed Overhead absorption: Based on actual DLS