Jersey Knits sells two types of fabric that are used interchangeably in the production of lawn chairs The following information about each fabric is available Required A Calculate the contribution margin sales volume variance B Calculate the contribution margin sales mix variance C Calculate the co...

A B and C Actual Units Sold x Actual Sales Mix x Standard CM Sales Mix Variance Actual Units ...

Jersey Knits sells two types of fabric that are used interchangeably in the production of lawn chairs.

Question:

Jersey Knits sells two types of fabric that are used interchangeably in the production of lawn chairs. The following information about each fabric is available:

Actual Contribution Margin Actual Volume Standard Contribution Margin $1.75/metre $5.00/metre Standard Volume 50,000 met

Required:

A. Calculate the contribution margin sales volume variance.

B. Calculate the contribution margin sales mix variance.

C. Calculate the contribution margin sales quantity variance.

D. Explain what has happened.

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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

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Question Posted: Oct 09, 2018 06:25 AM

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Jersey Knits sells two types of fabric that are used interchangeably in the production of lawn chairs.

Question:

Actual Contribution Margin Actual Volume Standard Contribution Margin $1.75/metre $5.00/metre Standard Volume 50,000 metres 10,000 metres $1.80/metre Fabric A 45,000 metres 12,000 metres Fabric B $4.75/metre

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A B and C Actual Units Sold x Actual Sales Mix x Standard CM Sales Mix Variance Actual Units ...View the full answer

Cost Management Measuring, Monitoring and Motivating Performance

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