(Appendix 11A) Kyekyeku Company retails two models of a product: Model X and Model Y. It considers both products to be close substitutes. The following data relate to the company's operations for last year:

-(Appendix 11A)What was the market volume variance for last year?
A) $18,375.00 favourable.
B) $19,687.50 favourable.
C) $21,875.00 favourable.
D) $21,875.00 unfavourable.

Question

(Appendix 11A) Kyekyeku Company retails two models of a product: Model X and Model Y. It considers both products to be close substitutes. The following data relate to the company's operations for last year:
(Appendix 11A) Kyekyeku Company retails two models of a product: Model X and Model Y. It considers both products to be close substitutes. The following data relate to the company's operations for last year: -(Appendix 11A) What was the market volume variance for last year? A) $18,375.00 favourable. B) $19,687.50 favourable. C) $21,875.00 favourable. D) $21,875.00 unfavourable.

-(Appendix 11A) What was the market volume variance for last year?

-(Appendix 11A)What was the market volume variance for last year?
A) $18,375.00 favourable. 
B) $19,687.50 favourable. 
C) $21,875.00 favourable. 
D) $21,875.00 unfavourable.

Quizplus · Accepted Answer

The market volume variance is calculated as the difference between the actual market volume and the budgeted market volume, multiplied by the budgeted contribution margin per unit. The correct answer is $21,875.00 favourable, indicating that the actual market volume was higher than expected, resulting in a favourable variance.

(Appendix 11A) Kyekyeku Company Retails Two Models of a Product