Biodex, Inc., produces a single product, an herbicide called GrassNoMore. One of Biodex's key customers is the Amontillado Winery Company, which uses the product to control weeds growing between rows of grapevines. GrassNoMore and competing products are sold by the pound. The table below contains information Biodex has assembled regarding sales made to Amontillado Winery Company in the most recently concluded year.
Sales of GrassNoMore to Amontillado Winery Company
Required:
Compute the following variances and show that they reconcile to the total favorable profit variance of $164,600:
Customer Purchase Volume Variance
Customer Market Share Variance
Price Variance
Cost Spending Variance

Question

Biodex, Inc., produces a single product, an herbicide called GrassNoMore. One of Biodex's key customers is the Amontillado Winery Company, which uses the product to control weeds growing between rows of grapevines. GrassNoMore and competing products are sold by the pound. The table below contains information Biodex has assembled regarding sales made to Amontillado Winery Company in the most recently concluded year.
  Sales of GrassNoMore to Amontillado Winery Company
  Required:
Compute the following variances and show that they reconcile to the total favorable profit variance of $164,600:
Customer Purchase Volume Variance
Customer Market Share Variance
Price Variance
Cost Spending Variance

Quizplus · Accepted Answer

The Answer of Biodex, Inc., produces a single product, an herbicide called GrassNoMore. One of Biodex's key customers is the Amontillado Winery Company, which uses the product to control weeds growing between rows of grapevines. GrassNoMore and competing products are sold by the pound. The table below contains information Biodex has assembled regarding sales made to Amontillado Winery Company in the most recently concluded year.
  Sales of GrassNoMore to Amontillado Winery Company
  Required:
Compute the following variances and show that they reconcile to the total favorable profit variance of $164,600:
Customer Purchase Volume Variance
Customer Market Share Variance
Price Variance
Cost Spending Variance