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Author Question: The Fortise Corporation manufactures two types of vacuum cleaners, the Victor for commercial ... (Read 158 times)

audragclark

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on: Mar 6, 2021

Question 1

The difference between budgeted contribution margin per composite unit for the actual mix and the budgeted contribution margin per composite unit for the budgeted mix is the ________.
◦ material-mix variance
◦ flexible-budget variance
◦ sales-mix variance
◦ sales-volume variance

Question 2

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 2017 were as follows:

Static BudgetVictorHouse-MateTotal
Number sold6,00024,00030,000
Contribution margin$1,560,000$3,120,000$4,680,000
Actual ResultsVictorHouse-MateTotal
Number sold530035,00040,300
Contribution margin$1,400,000$4,130,000$5,530,000

What is the total sales-quantity variance in terms of the contribution margin? (Round any intermediary calculations two decimal places.)
◦ $1,606,800 unfavorable
◦ $535,600 favorable
◦ $1,071,200 unfavorable
◦ $1,606,800 favorable
Horngren's Cost Accounting: A Managerial Emphasis ¦ Datar, Rajan ¦ 16th Edition
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Marked as best answer by audragclark on Mar 6, 2021

bd5255

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Reply #1 on: Mar 6, 2021
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audragclark

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

miss.ashley

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Reply 3 on: Yesterday
Gracias!

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