The Corata Appliance Manufacturing Corporation manufactures two vacuum cleaners, the Standard and the Super. The following information was gathered about the two products:

What is the total sales-mix variance in terms of the contribution margin? (Round intermediary calculations to two decimal places.)
A) $369,600 favorable
B) $295,680 favorable
C) $1,034,880 favorable
D) $665,280 favorable

Question

The Corata Appliance Manufacturing Corporation manufactures two vacuum cleaners, the Standard and the Super. The following information was gathered about the two products:

What is the total sales-mix variance in terms of the contribution margin? (Round intermediary calculations to two decimal places.)
A) $369,600 favorable 
B) $295,680 favorable 
C) $1,034,880 favorable 
D) $665,280 favorable

Quizplus · Accepted Answer

Sales mix calculations:
Budgeted Standard = 2700 / (2700 + 600) = 0.82
Budgeted Super = 600 / (2700 + 600) = 0.18
Actual Standard = 3000 / (3000 + 1400) = 0.68
Actual Super = 1400 / (3000 + 1400) = 0.32
 11ea1398_f0cb_186d_a1e4_cdface75cf86_TB3027_00

The Corata Appliance Manufacturing Corporation Manufactures Two Vacuum Cleaners, the Standard