Custom Choppers, Inc. produces two types of motorcycles, a standard model which sells for $5,000, and a customized model which sells for $10,000. Budgeted sales for the year are 300 standard models and 100 customized models. Variable expenses are $1,500 for the standard model and $3,500 for the customized model. Actual sales were 500 standard models at $6,000 and 150 customized models at $12,000.
Calculate:
a. Contribution Margin Variance
b. Budgeted Average Unit Contribution Margin
c. Contribution Margin Volume Variance
Indicate whether Favorable (F) or Unfavorable (U)
SUPPORTING CALCULATIONS:

Question

Quizplus · Accepted Answer

The Answer of Custom Choppers, Inc. produces two types of motorcycles, a standard model which sells for $5,000, and a customized model which sells for $10,000. Budgeted sales for the year are 300 standard models and 100 customized models. Variable expenses are $1,500 for the standard model and $3,500 for the customized model. Actual sales were 500 standard models at $6,000 and 150 customized models at $12,000.
Calculate:
a. Contribution Margin Variance
b. Budgeted Average Unit Contribution Margin
c. Contribution Margin Volume Variance
Indicate whether Favorable (F) or Unfavorable (U)
SUPPORTING CALCULATIONS: