Twitter Company manufactures a remote control device for home theaters. The following data were from the operating period just completed:$\begin{array}{lll}\text { Actual market size (units) } & 12,000 \
\text { Budgeted market size (units) } & 11,000 \
\text { Actual market share } & 15 \% \
\text { Budgeted market share } & 12 \%\
\text { Budgeted selling price per unit } & \$ 60 \
\text { Actual selling price per unit } & \$ 55 \
\text { Budgeted variable cost per unit } & \$ 30 \
\text { Actual variable cost per unit } & \$ 18
\end{array}$What is the firm's market share variance?
A) $10,800 favorable.
B) $11,200 favorable.
C) $12,4000 favorable.
D) $12,600 favorable.
E) $13,200 favorable.

Question

Twitter Company manufactures a remote control device for home theaters. The following data were from the operating period just completed:$\begin{array}{lll}\text { Actual market size (units) } & 12,000 \
\text { Budgeted market size (units) } & 11,000 \
\text { Actual market share } & 15 \% \
\text { Budgeted market share } & 12 \%\
\text { Budgeted selling price per unit } & \$  60 \
\text { Actual selling price per unit } & \$  55 \
\text { Budgeted variable cost per unit } & \$  30 \
\text { Actual variable cost per unit } & \$ 18
\end{array}$What is the firm's market share variance?
A) $10,800 favorable.
B) $11,200 favorable.
C) $12,4000 favorable.
D) $12,600 favorable.
E) $13,200 favorable.

Quizplus · Accepted Answer

The market share variance is calculated as follows:Market share variance = (Actual market share - Budgeted market share) x Budgeted market size x Budgeted selling price per unit= (15% - 12%) x 11,000 x $60= $10,800 favorable

Twitter Company Manufactures a Remote Control Device for Home Theaters