Variance analysis, multiple products. Emcee Inc. manufactures and sells two fruit drinks: Kostor and Limba. Budgeted...

 

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Variance analysis, multiple products. Emcee Inc. manufactures and sells two fruit drinks: Kostor and Limba. Budgeted and actual results for 2017 are as follows: Budget for 2017 Actual for 2017 Selling Variable Cost Product Kostor Limba Price per Carton $12.00 $7.20 Cartons Sold 130,000 Selling Variable Cost Cartons Price per Carton Sold $12.50 $8.00 132,000 $15.00 $8.25 120,000 $16.00 $7.75 108,000 Required: 1. Compute the total sales-volume variance, the total sales-mix variance, and the total sales- quantity variance. (Calculate all variances in terms of contribution margin.) Show results for each product in your computations. 2. What inferences can you draw from the variances computed? Variance analysis, multiple products. Emcee Inc. manufactures and sells two fruit drinks: Kostor and Limba. Budgeted and actual results for 2017 are as follows: Budget for 2017 Actual for 2017 Selling Variable Cost Product Kostor Limba Price per Carton $12.00 $7.20 Cartons Sold 130,000 Selling Variable Cost Cartons Price per Carton Sold $12.50 $8.00 132,000 $15.00 $8.25 120,000 $16.00 $7.75 108,000 Required: 1. Compute the total sales-volume variance, the total sales-mix variance, and the total sales- quantity variance. (Calculate all variances in terms of contribution margin.) Show results for each product in your computations. 2. What inferences can you draw from the variances computed?