The formula (budgeted contribution margin based on actual units sold of all products at the budgeted mix)- (contribution margin in the static budget)which is based on budgeted units of all products to be sold at budgeted mix)is equal to the:
A)sales-volume variance
B)sales-mix variance
C)sales-quantity variance
D)Both A and B are correct.

Question

Quizplus · Accepted Answer

The sales-volume variance measures the difference between the budgeted contribution margin based on actual units sold and the contribution margin in the static budget. The sales-mix variance measures the difference between the budgeted contribution margin based on actual units sold of all products at the budgeted mix and the contribution margin in the static budget. Therefore, both A and D are correct.

The Formula (Budgeted Contribution Margin Based on Actual Units Sold