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Author Question: The Chair Company manufactures two modular types of chairs: one for the residential market, and the ... (Read 69 times)

@Brianna17

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The Chair Company manufactures two modular types of chairs: one for the residential market, and the other for the office market. Budgeted and actual operating data for the year 2015 are: 

Static BudgetResidentialOfficeTotal
Number of chairs sold260,000140,000400,000
Contribution margin$26,000,000$11,200,000$37,200,000
Actual ResultsResidentialOfficeTotal
Number of chairs sold248,400165,600414,000
Contribution margin$22,356,000$13,248,000$35,604,000

Required: 
Compute the following variances in terms of contribution margin:
a.  Compute the total static-budget variance, the total flexible-budget variance, and the total sales-volume variance.
b.  Compute the sale-mix variance and the sales-quantity variance by type of chair, and in total.


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Marked as best answer by @Brianna17 on Mar 6, 2021

carolinefletcherr

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@Brianna17

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Reply 2 on: Mar 6, 2021
Great answer, keep it coming :)


Dominic

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Reply 3 on: Yesterday
:D TYSM

 

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