Creepers,Inc.manufactures stuffed spiders and mummies.During September the following information was gathered:
What is the sales mix variance for Spiders?
A)$1,125 favorable.
B)$1,500 favorable.
C)$1,650 unfavorable.
D)$4,800 favorable.
E)$4,800 unfavorable.

Question

Creepers,Inc.manufactures stuffed spiders and mummies.During September the following information was gathered: 
What is the sales mix variance for Spiders?
A)$1,125 favorable. 
B)$1,500 favorable. 
C)$1,650 unfavorable. 
D)$4,800 favorable. 
E)$4,800 unfavorable.

Quizplus · Accepted Answer

The sales mix variance for Spiders can be calculated as follows:

Actual sales mix percentage of spiders: 4,400/(4,400+3,300) = 57.14%
Budgeted sales mix percentage of spiders: 60%

Sales mix variance for spiders = (Budgeted sales mix percentage - Actual sales mix percentage) x Total sales = (0.60 - 0.5714) x $30,000 = $1,650 unfavorable.

Therefore, the correct answer is C - $1,650 unfavorable.