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 2012 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 2012 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 2012 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