Exam 3 Practice Problems - Fall 2019 Woodruff Flowering Plants provides the following information for the month of May: Actual Euchsia Dogwood 18.000 1.500 20 1 7 Budget Fuchsia Dogwood 17.000 Sales in units 516 Contribution margin per unit 500 1. For May, Woodruff will report an) A) favorable sales mix variance B) unfavorable sales-mix variance C) favorable sales volume variance D) unfavorable sales-volume variance The sales-mix variance is the difference between budgeted contribution margin for the actual sales mix and the budgeted contribution margin for the budgeted sales mix. True False Answer the following questions using the information below: The Fortise Corporation manufactures two types of vacuum cleaners, the Victor for commercial building use and the House-Mate for residences. Budgeted and actual operating data for the year 2015 were as follows: Static Budget Number sold Contribution margin Victor 6,000 $1,560,000 House-Mate 24,000 $3,120,000 Total 30,000 $4,680,000 Actual Results Number sold Contribution margin Victor 5,000 $1,400,000 House Mate 35,000 $4,130,000 Total 40,000 $5,530,000 3. What is the contribution margin for the flexible budget? A) $1,250,000 B) $4,200,000 C) $5,250,000 D) $5,850,000 4. What is the total static-budget variance in terms of the contribution margin? A) $900,000 favorable B) $850,000 favorable C) $250,000 unfavorable D) $450,000 unfavorable Exam 3 Practice Problems - Fall 2019 Woodruff Flowering Plants provides the following information for the month of May: Actual Euchsia Dogwood 18.000 1.500 20 1 7 Budget Fuchsia Dogwood 17.000 Sales in units 516 Contribution margin per unit 500 1. For May, Woodruff will report an) A) favorable sales mix variance B) unfavorable sales-mix variance C) favorable sales volume variance D) unfavorable sales-volume variance The sales-mix variance is the difference between budgeted contribution margin for the actual sales mix and the budgeted contribution margin for the budgeted sales mix. True False Answer the following questions using the information below: The Fortise Corporation manufactures two types of vacuum cleaners, the Victor for commercial building use and the House-Mate for residences. Budgeted and actual operating data for the year 2015 were as follows: Static Budget Number sold Contribution margin Victor 6,000 $1,560,000 House-Mate 24,000 $3,120,000 Total 30,000 $4,680,000 Actual Results Number sold Contribution margin Victor 5,000 $1,400,000 House Mate 35,000 $4,130,000 Total 40,000 $5,530,000 3. What is the contribution margin for the flexible budget? A) $1,250,000 B) $4,200,000 C) $5,250,000 D) $5,850,000 4. What is the total static-budget variance in terms of the contribution margin? A) $900,000 favorable B) $850,000 favorable C) $250,000 unfavorable D) $450,000 unfavorable