Custom Care, Inc., produces a wide variety of personal accessory products for men and women. One of the company's most popular items is a leather-covered cushioned carrying case for smartphones. The division that produces this case wants to better understand its performance over the last year and has assembled the information below to support its analysis.
Required:
a. Compute the sales volume variance for last year.
b. Compute the sales price variance for last year.
c. Compute the variable manufacturing cost variance for last year.

Question

Custom Care, Inc., produces a wide variety of personal accessory products for men and women. One of the company's most popular items is a leather-covered cushioned carrying case for smartphones. The division that produces this case wants to better understand its performance over the last year and has assembled the information below to support its analysis.
  Required: 
a. Compute the sales volume variance for last year.
b. Compute the sales price variance for last year.
c. Compute the variable manufacturing cost variance for last year.

Quizplus · Accepted Answer

The Answer of Custom Care, Inc., produces a wide variety of personal accessory products for men and women. One of the company's most popular items is a leather-covered cushioned carrying case for smartphones. The division that produces this case wants to better understand its performance over the last year and has assembled the information below to support its analysis.
  Required: 
a. Compute the sales volume variance for last year.
b. Compute the sales price variance for last year.
c. Compute the variable manufacturing cost variance for last year.