Acct 222 Case Study
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ACCT 222 PROBLEM NO 3 (21/09/2016) (Solution)(i). Budgeted and actual income statementsBudgeted $Actual $Sales – Male3000016000Sales – Female1800040000Total sales4800056000Commission – Male 12000 7000Commission – Female1000022000Total commission2200029000Fixed cost2000024000Profit 6000 3000(ii) Sales mix variancesActual sales volumeActual sales in budgeted proportionsDifferenceStandard CMSales mix varianceMale 20003200 (80%)(1200)$ 4.50($ 5400) UFemale 2000800 (20%)1200$ 8.00 $ 9600 FTotal sales mix variance $ 4200 FSales quantity variances Actual sales volume in budgeted proportionsBudgeted sales quantityDifferenceStandard CMSales quantity varianceMale 3200 (80%)4000(800)$ 4.50($ 3600) UFemale 800 (20%)1000(200)$ 8.00($ 1600) UTotal sales quantity variance($ 5200) USales volume varianceSales mix varianceSales quantity varianceSales volume varianceMale ($ 5400) U($ 3600) U(9000) UFemale $ 9600 F($ 1600) U8000 FTotal$ 4200 F($ 5200) U1000 UOr presented as we did in classSales Mix and Sales Quantity VariancesMaleFlexible Budget Static Budget
AQall x Amix x BUCM AQall x Bmix x BUCM BQall x Bmix x BUCM2000 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 UFemaleFlexible Budget Static BudgetAQall 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 FTotal SMV = $4200F SQV= $5200U SVV = $1000U(iii) Sales price variances Sales price variances – Male ($8.00-$7.50) x 2000 $1000 F