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dxpayne dxpayne
wrote...
Posts: 930
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6 years ago
Better Printing sells hardcover and softcover books. For January the following information is available:
   Hardcover   Softcover
Actual market size   200,000   400,000
Budgeted market size    250,000   300,000
Actual market share   38%   36%
Budgeted market share   36%   32%
Budgeted cont. margin   $2.40   $1.00
Actual average selling price   $14.00   $6.50

Required:
a.   Compute the market-share variance and market-size variance. (Round intermediate calculations to four decimal places)
b.   Compute the total sales-quantity variance .
Textbook 
Cost Accounting: A Managerial Emphasis, Canadian Edition

Cost Accounting: A Managerial Emphasis, Canadian Edition


Edition: 7th
Authors:
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Replies
wrote...
6 years ago
Actual market share    = 
   = 0.3667

Budgeted market share   = 
   = 0.3382

CM per composite unit   = 
   = $312,000/186,000 = $1.6774
Market-share variance:
600,000 × (0.3667 - 0.3382) × $1.6774 = $28,684 F
Market-size variance:
(600,000 - 550,000) × 0.3382 × $1.6774= $28,364 F
Sales-quantity variance = $28,684 + $28,364 = $57,048 F
dxpayne Author
wrote...
5 years ago
Beauty, thank you!
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