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The Following Information About the Two Motorcycle Models Produced by Custom

Question 147

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The following information about the two motorcycle models produced by Custom Choppers, Inc. is given:  Budgeted  Actual  Standard model sales in units 300500 Customized model sales in units 100150 Standard model budgeted contribution margin $3,500 Customized model budgeted contribution margin $6,500 Budgeted average unit contribution margin $4,250 Total contribution margin $1,700,000$3,525,000\begin{array} { | l | r | r | } \hline & \text { Budgeted } & \text { Actual } \\\hline \text { Standard model sales in units } & 300 & 500 \\\hline \text { Customized model sales in units } & 100 & 150 \\\hline \text { Standard model budgeted contribution margin } & \$ 3,500 & \\\hline \text { Customized model budgeted contribution margin } & \$ 6,500 & \\\hline \text { Budgeted average unit contribution margin } & \$ 4,250 & \\\hline \text { Total contribution margin } & \$ 1,700,000 & \$ 3,525,000 \\\hline\end{array}
Calculate the sales mix variance.

Correct Answer:

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Sales mix variance =
[(Standard model ac...

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