The Payne Company manufactures two types of vinyl flooring. Budgeted and actual operating data for 2020 are
Question:
The Payne Company manufactures two types of vinyl flooring. Budgeted and actual operating data for 2020 are as follows:
In late 2019, a marketing research firm estimated industry volume for commercial and residential vinyl flooring for 2020 at 800,000 rolls. Actual industry volume for 2020 was 700,000 rolls.
Required:
1. Compute the sales-mix variance and the sales-quantity variance by type of vinyl flooring and in total. (Compute all variances in terms of contribution margins.)
2. Compute the market-share variance and the market-size variance.
3. What insights do the variances calculated in requirements 1 and 2 provide about Payne Company’s performance in 2020?
Step by Step Answer:
Horngrens Cost Accounting A Managerial Emphasis
ISBN: 9781292363073
17th Global Edition
Authors: Srikant Datar, Madhav Rajan