Wolfe & Goodwin, LLC, manufactures a variety of security devices for residential and commercial use. The company is decentralized into Residential Products and Commercial Applications divisions. For their recently concluded year, the divisions reported the following budgeted and actual amounts for a motion detector and alarm that is produced in both residential and commercial models.
Required:
a. Compute the sales volume and sales price variances for the Residential Products and Commercial Applications divisions with respect to the motion detector.
b. Which division recorded the better performance? Why?

Question

Wolfe & Goodwin, LLC, manufactures a variety of security devices for residential and commercial use. The company is decentralized into Residential Products and Commercial Applications divisions. For their recently concluded year, the divisions reported the following budgeted and actual amounts for a motion detector and alarm that is produced in both residential and commercial models.
  Required: 
a. Compute the sales volume and sales price variances for the Residential Products and Commercial Applications divisions with respect to the motion detector.
b. Which division recorded the better performance? Why?

Quizplus · Accepted Answer

The Answer of Wolfe & Goodwin, LLC, manufactures a variety of security devices for residential and commercial use. The company is decentralized into Residential Products and Commercial Applications divisions. For their recently concluded year, the divisions reported the following budgeted and actual amounts for a motion detector and alarm that is produced in both residential and commercial models.
  Required: 
a. Compute the sales volume and sales price variances for the Residential Products and Commercial Applications divisions with respect to the motion detector.
b. Which division recorded the better performance? Why?

Wolfe & Goodwin, LLC, Manufactures a Variety of Security Devices