PT MASK produces two types of snack products; Fun Noodles and Full Noodles. Both products are made in the same way but with different packaging and brands. The following are financial data that occurred at PT MASK related to the production and sales of Fun Noodle and Full Noodle during 20X1:

PT Mask sells both of its products in the West Java area. For 20X1 budget reporting, PT MASK assumes a 12.5% market share based on all sales in the West Java region. Total sales of noodles in all areas of West Java for the 20X1 period itself is predicted to be worth 10,000,000 units. However, the realization of sales in the Java region during 20X1 turned out to be worth 12,300,000 units.

The following is information regarding the variance that occurred at PT MASK during the 20X1 period:

The accounting department of PT MASK made a variance analysis report aimed at the leadership of PT MASK with a note that the company's condition this year was not good or worsened. You are required to analyze all variance conditions at PT MASK. Do you agree with the statement of PT MASK's accounting department? Explain.

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Product Fun Noodles Full Noodles Price Sell/unit 10 7.5 Budget 20X1 (in $) B. Variable /unit 5.5 4 Amount Sold 500,000 units 750,000 units Realization 20X1 (in ($) B. Variable Amount /unit Sold Price Sell/unit 10.1 7.75 5.75 3.70 504,300 units 725,700 units Product Fun Noodles Full Noodles Price Sell/unit 10 7.5 Budget 20X1 (in $) B. Variable /unit 5.5 4 Amount Sold 500,000 units 750,000 units Realization 20X1 (in ($) B. Variable Amount /unit Sold Price Sell/unit 10.1 7.75 5.75 3.70 504,300 units 725,700 units

Answer rating: 100% (QA)

Analysis of Variance Conditions at PT MASK Sales Variance PT MASKs sales variance is unfavorable for both Fun Noodles and Full Noodles This means that the company sold fewer units of both products tha... View the full answer