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Fundamentals of Cost Accounting 2nd Edition by William Lanen, Carolyn Wells, Michael Maher
Edition 2ISBN: 978-0077274993Fundamentals of Cost Accounting 2nd Edition by William Lanen, Carolyn Wells, Michael Maher
Edition 2ISBN: 978-0077274993 Exercise 23
Industry Volume and Market Share Variances
Kay's Auto Products budgeted sales of 10,000 units of product B, assuming that the company would have 20 percent of 50,000 units sold in a particular market. The actual results were 9,000 units, based on a 15 percent share of a total market of 60,000 units. The budgeted contribution margin is $8 per unit.
Required
Compute the sales activity variance, and break it down into market share and industry volume.
Kay's Auto Products budgeted sales of 10,000 units of product B, assuming that the company would have 20 percent of 50,000 units sold in a particular market. The actual results were 9,000 units, based on a 15 percent share of a total market of 60,000 units. The budgeted contribution margin is $8 per unit.
Required
Compute the sales activity variance, and break it down into market share and industry volume.
Explanation
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Sales activity variance
The sales activ...
Fundamentals of Cost Accounting 2nd Edition by William Lanen, Carolyn Wells, Michael Maher
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