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 year 2015 are:

Required:
Compute the following variances in terms of contribution margin:
a.Compute the total static-budget variance,the total flexible-budget variance,and the total sales-volume variance.
b.Compute the sale-mix variance and the sales-quantity variance by type of chair,and in total.

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 year 2015 are:

Required:
Compute the following variances in terms of contribution margin:
a.Compute the total static-budget variance,the total flexible-budget variance,and the total sales-volume variance.
b.Compute the sale-mix variance and the sales-quantity variance by type of chair,and in total.

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 year 2015 are:

Required:
Compute the following variances in terms of contribution margin:
a.Compute the total static-budget variance,the total flexible-budget variance,and the total sales-volume variance.
b.Compute the sale-mix variance and the sales-quantity variance by type of chair,and in total.

The Chair Company Manufactures Two Modular Types of Chairs: One