The following budgeted and actual contribution statement is for a component sold by Dark, Inc. for June of this year:
Required:

a.
Compute the sales price variance, the net sales volume variance, and the operating cost variance for June.
b.
Use the calculations in part a. to reconcile the budgeted and actual contribution to corporate costs and profits.
c.
How would you evaluate the performance of Dark, Inc.'s manager?

Question

The following budgeted and actual contribution statement is for a component sold by Dark, Inc. for June of this year:
Required:
  
a.
Compute the sales price variance, the net sales volume variance, and the operating cost variance for June.
b.
Use the calculations in part a. to reconcile the budgeted and actual contribution to corporate costs and profits.
c.
How would you evaluate the performance of Dark, Inc.'s manager?

Quizplus · Accepted Answer

The Answer of The following budgeted and actual contribution statement is for a component sold by Dark, Inc. for June of this year:
Required:
  
a.
Compute the sales price variance, the net sales volume variance, and the operating cost variance for June.
b.
Use the calculations in part a. to reconcile the budgeted and actual contribution to corporate costs and profits.
c.
How would you evaluate the performance of Dark, Inc.'s manager?

The Following Budgeted and Actual Contribution Statement Is for a Component