The Furniluxe manufactures two types of study desk: one for the residential market, and the other...

 

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The Furniluxe manufactures two types of study desk: one for the residential market, and the other for the school market. Budgeted and actual operating data for the year 2022 are: Residential School Static Budget Number of desk sold Contribution margin Actual Results Number of desk sold Contribution margin 390,000 $39,000,000 Residential 232,000 $20,880,000 210,000 $16,800,000 School 348,000 $27,840,000 Total Required: Compute the following variances in terms of contribution margin: 1. Compute the total sales-volume variance. (3%) 600,000 $55,800,000 Total 580,000 $48,720,000 The Furnilixe prepared the budget for 2022 assuming a 15% market share based on total desk sales in the region. The total desk market was estimated to reach sales of 4,000,000 desks. However, actual total sales volume was 3,625,000 desks. 2. Compute the sales-mix variance and the sales-quantity variance by type of desk. (7%) Compute the market share variance and the market size variance. (5%) 3. 4. Provide possible explanation on the result! (5%) The Furniluxe manufactures two types of study desk: one for the residential market, and the other for the school market. Budgeted and actual operating data for the year 2022 are: Residential School Static Budget Number of desk sold Contribution margin Actual Results Number of desk sold Contribution margin 390,000 $39,000,000 Residential 232,000 $20,880,000 210,000 $16,800,000 School 348,000 $27,840,000 Total Required: Compute the following variances in terms of contribution margin: 1. Compute the total sales-volume variance. (3%) 600,000 $55,800,000 Total 580,000 $48,720,000 The Furnilixe prepared the budget for 2022 assuming a 15% market share based on total desk sales in the region. The total desk market was estimated to reach sales of 4,000,000 desks. However, actual total sales volume was 3,625,000 desks. 2. Compute the sales-mix variance and the sales-quantity variance by type of desk. (7%) Compute the market share variance and the market size variance. (5%) 3. 4. Provide possible explanation on the result! (5%)

Answer rating: 100% (QA)

1 Total SalesVolume Variance The total salesvolume variance is calculated as the difference between the budgeted contribution margin and the actual co... View the full answer