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Acct 222 Case Study

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Autor:   •  August 8, 2017  •  Case Study  •  2,597 Words (11 Pages)  •  31 Views

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ACCT 222 PROBLEM NO 3 (21/09/2016)  

(Solution)

(i). Budgeted and actual income statements

Budgeted $

Actual $

Sales - Male

30000

16000

Sales - Female

18000

40000

Total sales

48000

56000

Commission - Male

12000

  7000

Commission - Female

10000

22000

Total commission

22000

29000

Fixed cost

20000

24000

Profit

  6000

  3000

(ii)

 Sales mix variances

Actual sales volume

Actual sales in budgeted proportions

Difference

Standard CM

Sales mix variance

Male      2000

3200 (80%)

(1200)

$ 4.50

($ 5400) U

Female  2000

800   (20%)

1200

$ 8.00

 $ 9600 F

Total sales mix variance

 $ 4200 F

Sales quantity variances

Actual sales volume in budgeted proportions

Budgeted sales quantity

Difference

Standard CM

Sales quantity variance

Male 3200 (80%)

4000

(800)

$ 4.50

($ 3600) U

Female 800   (20%)

1000

(200)

$ 8.00

($ 1600) U

Total sales quantity variance

($ 5200) U

Sales volume variance

Sales mix variance

Sales quantity variance

Sales volume variance

Male

($ 5400) U

($ 3600) U

(9000) U

Female

$ 9600 F

($ 1600) U

8000 F

Total

$ 4200 F

($ 5200) U

1000 U

Or presented as we did in class

Sales Mix and Sales Quantity Variances

Male

Flexible Budget                                                                Static Budget

AQall x Amix x BUCM                AQall x Bmix x BUCM                        BQall x Bmix x BUCM

2000 x $4.50                        3200 x $4.50                                4000 x $4.50

$9000                                $14400                                        $18000

[pic 1][pic 2][pic 3][pic 4][pic 5][pic 6]

                        Sales Mix Variance                Sales Quantity Variance[pic 7]

                        $5400 U                                $3600 U

                                                        [pic 8][pic 9][pic 10]

                                Sales volume variance

                                $9000 U

Female

Flexible Budget                                                                Static Budget

AQall x Amix x BUCM                AQall x Bmix x BUCM                        BQall x Bmix x BUCM

$2000 x $8.00                        $800 x $8.00                                $1000 X $8.00

$16000                                 $6400                                        $8000                        

[pic 11][pic 12][pic 13][pic 14][pic 15][pic 16]

                        Sales Mix Variance                Sales Quantity Variance[pic 17]

                        $9600 F                                $1600 U

                                                        [pic 18][pic 19][pic 20]

                                Sales volume variance

                                $8000 F

Total                SMV = $4200F                                SQV= $5200U

                                        SVV = $1000U

(iii) Sales price variances

        Sales price variances - Male  ($8.00-$7.50) x 2000                                 $1000 F

...

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