Standard Costs and Variance Analysis Paper 17


The market share variance is partly a function of the unit contribution margin (UCM). It equals


The sales mix variance


Actual and budgeted information about the sales of a product are presented for June as follows.
..............................Actual ...Budget
Units .....................8,000.....10,000
Sales Revenue ....$92,000...$105,000
The sales price variance for June was


"Miller Company’s actual and budgeted sales for its premier line of optical frames for the month of October is as follows."
Actual Budget
Units 24,000 28,000 24,000 28000
Sales Dollars $336,000 $350,000 $336,000 $350,000
The sales-volume variance is


When comparing its actual operating income to its master budget operating income, the controller for Burke Corporation noted that actual total sales units equaled budgeted total sales units and budgeted fixed costs equaled actual fixed costs. He also noted that both products were sold for their budgeted selling prices per unit and each product had both a budgeted and actual contribution margin ratio of 40%. However, Burke experienced a favorable static budget variance for operating income for the period. Which one of the following is a viable explanation for this variance?


For the first week of the month, the Flour Shop Bakery budgeted to sell 100 cakes at $35 each. They actually sold 105 cakes at $40 each. The selling-price variance is


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