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