The Chair Company manufactures two modular types of chairs; one for the residential market, and the other for the office market. Budgeted and actual operating data for the past year are:

The industry volume for residential and office chairs of the type sold by the Chair company had been estimated at 2,400,000. Actual industry volume for the year was 2,200,000 chairs.
Required:
a. Compute the sale-mix variance and the sales- quantity variance by type of chair, and in total.
b. Compute the market-share variance and market-size variances. (Calculate actual and budgeted market share percentages to two decimal places.)

Question

The Chair Company manufactures two modular types of chairs; one for the residential market, and the other for the office market. Budgeted and actual operating data for the past year are:
  
The industry volume for residential and office chairs of the type sold by the Chair company had been estimated at 2,400,000. Actual industry volume for the year was 2,200,000 chairs.
Required:
a. Compute the sale-mix variance and the sales- quantity variance by type of chair, and in total.
b. Compute the market-share variance and market-size variances. (Calculate actual and budgeted market share percentages to two decimal places.)

Quizplus · Accepted Answer

The Answer of The Chair Company manufactures two modular types of chairs; one for the residential market, and the other for the office market. Budgeted and actual operating data for the past year are:
  
The industry volume for residential and office chairs of the type sold by the Chair company had been estimated at 2,400,000. Actual industry volume for the year was 2,200,000 chairs.
Required:
a. Compute the sale-mix variance and the sales- quantity variance by type of chair, and in total.
b. Compute the market-share variance and market-size variances. (Calculate actual and budgeted market share percentages to two decimal places.)

The Chair Company Manufactures Two Modular Types of Chairs; One