Answer the following questions using the information below: The Corata Appliance Manufacturing Corporation manufactures two vacuum cleaners, the Standard and the Super. The following information was gathered about the two products: $\begin{array}{lrr}&\text { Standard }&\text { Super }\\ \text { Bud geted sales in units } & 2,400 & 600 \\ \text { Bud geted selling price } & \$ 600 & \$ 1,700 \\ \text { Bud geted contribution margin per unit } & \$ 400 & \$ 1,050 \\ \text { Actual sales in units } & 2,800 & 1,200 \\ \text { Actual selling price } & \$ 650 & \$ 1,680 \end{array}$ -What is the total sales-mix variance in terms of the contribution margin?

A) $290,000 favorable B) $260,000 favorable C) $530,000 favorable D) $790,000 favorable A) $290,000 favorable B) $260,000 favorable C) $530,000 favorable D) $790,000 favorable

Answer the following questions using the information below: Archoid's Flowering Plants provides the following information for the month of May: $\begin{array}{lrrrr}&\text { Actual }&&\text { Budget }\\ &\text { Tulips}&\text { Geraniums }&\text { Tulips}&\text { Geraniums }\\ \text { Sales in units } & 4,420 & 4,080 & 4,950 & 3,300 \\ \text { Contribution margin per unit } & \$ 12 & \$ 19 & \$ 11 & \$ 21 \end{array}$ -For May,the company will report a(n)________.

A) favorable sales-mix variance B) unfavorable sales-mix variance C) favorable sales-volume variance D) unfavorable sales-volume variance A) favorable sales-mix variance B) unfavorable sales-mix variance C) favorable sales-volume variance D) unfavorable sales-volume variance

Answer the following questions using the information below: The Fortise Corporation manufactures two types of vacuum cleaners, the Victor for commercial building use and the House-Mate for residences. Budgeted and actual operating data for the year 2015 were as follows: \[\begin{array}{l} \begin{array} { l r r r } \text { Static Budget } & \text { Victor } & \text { House-Mate } & \text { Total } \\ \hline \text { Number sold } & 6,000 & 24,000 & 30,000\\ \text { Contribution margin } &\$ 1,560,000 & \$ 3,120,000 &\$ 4,680,000\\\\ \text { Actual Results } & \text { Victor } & \text { House-Mate } & \text { Total } \\ \text { Number sold } & 5,000 & 35,000 & 40,000 \\ \text { Contribution margin } & \$ 1,400,000 & \$ 4,130,000 & \$ 5,530,000 \end{array} \end{array}\] -What is the total static-budget variance in terms of the contribution margin?

A) $900,000 favorable B) $850,000 favorable C) $250,000 unfavorable D) $450,000 unfavorable A) $900,000 favorable B) $850,000 favorable C) $250,000 unfavorable D) $450,000 unfavorable

Exam 14: Cost Allocation, customer-Profitability Analysis, and Sales-Variance Analysis

Answer the following questions using the information below: The Corata Appliance Manufacturing Corporation manufactures two vacuum cleaners, the Standard and the Super. The following information was gathered about the two products: Standard Super Bud geted sales in units 2,400 600 Bud geted selling price \ 600 \ 1,700 Bud geted contribution margin per unit \ 400 \ 1,050 Actual sales in units 2,800 1,200 Actual selling price \ 650 \ 1,680 -What is the total sales-mix variance in terms of the contribution margin?

(Multiple Choice)

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Question 61

The sales-mix variance will be unfavorable when ________.

(Multiple Choice)

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Question 62

When corporate-sustaining costs are fully allocated to distribution channels,then the sum of the distribution-channel operating incomes is ________.

(Multiple Choice)

4.9/5

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Question 63

Market-share variance = $350,000 (U); Market-size variance = $300,000 (F); Sales-mix variance = $600,000 (F); calculate the sales-quantity variance.

(Multiple Choice)

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Question 64

Customer-sustaining costs is the costs of activities to support individual customers,regardless of the number of units or batches of product delivered to the customer.

(True/False)

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Question 65

Briefly describe the four criteria used to guide cost-allocation decisions.

(Essay)

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Question 66

While allocating corporate costs to divisions ________.

(Multiple Choice)

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Question 67

With the use of a bar chart,the number of "unprofitable" customers and the magnitude of their losses are apparent.

(True/False)

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Question 68

Flexible-budget variance = $200,000 (F); sales-volume variance = $350,000 (U); sales-mix variance = $300,000 (F); calculate the static-budget variance.

(Multiple Choice)

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Question 69

There are two elements that influence customer profitability - revenues and costs.

(True/False)

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Question 70

The market-share variance is the difference in budgeted contribution margin for actual market size in units caused solely by actual market share being different from budgeted market share.

(True/False)

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Question 71

Animer Inc. provides the following information. Corporate advertising costs = $800,000 Division A - $4,500,000 Division B - $7,500,000 Assume that customers with higher revenues benefited more from corporate advertising costs than customers with lower revenues. -What is the allocated corporate costs for Division A?

(Multiple Choice)

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Question 72

An unfavorable sales-mix variance would most likely be caused by ________.

(Multiple Choice)

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Question 73

Today,companies are simplifying their cost systems and moving toward less-detailed and less-complex cost allocation bases.

(True/False)

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Question 74

Answer the following questions using the information below: Archoid's Flowering Plants provides the following information for the month of May: Actual Budget Tulips Geraniums Tulips Geraniums Sales in units 4,420 4,080 4,950 3,300 Contribution margin per unit \ 12 \ 19 \ 11 \ 21 -For May,the company will report a(n)________.

(Multiple Choice)

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Question 75

The sales-volume variance is subdivided into ________.

(Multiple Choice)

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Question 76

Under the cause and effect criterion,reasonableness is a matter of judgment rather than an operational criterion.

(True/False)

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Question 77

The sales-mix variance will be favorable when ________.

(Multiple Choice)

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Question 78

Answer the following questions using the information below: The Fortise Corporation manufactures two types of vacuum cleaners, the Victor for commercial building use and the House-Mate for residences. Budgeted and actual operating data for the year 2015 were as follows: Static Budget Victor House-Mate Total Number sold 6,000 24,000 30,000 Contribution margin \ 1,560,000 \ 3,120,000 \ 4,680,000 Actual Results Victor House-Mate Total Number sold 5,000 35,000 40,000 Contribution margin \ 1,400,000 \ 4,130,000 \ 5,530,000 -What is the total static-budget variance in terms of the contribution margin?

(Multiple Choice)

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(76)

Question 79

Which of the following illustrates a purpose for allocating costs to cost objects?

(Multiple Choice)

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Question 80

Showing 61 - 80 of 167

The sales-mix variance will be unfavorable when ________.

When corporate-sustaining costs are fully allocated to distribution channels,then the sum of the distribution-channel operating incomes is ________.

Market-share variance = $350,000 (U); Market-size variance = $300,000 (F); Sales-mix variance = $600,000 (F); calculate the sales-quantity variance.

Customer-sustaining costs is the costs of activities to support individual customers,regardless of the number of units or batches of product delivered to the customer.

Briefly describe the four criteria used to guide cost-allocation decisions.

While allocating corporate costs to divisions ________.

With the use of a bar chart,the number of "unprofitable" customers and the magnitude of their losses are apparent.

Flexible-budget variance = $200,000 (F); sales-volume variance = $350,000 (U); sales-mix variance = $300,000 (F); calculate the static-budget variance.

There are two elements that influence customer profitability - revenues and costs.

The market-share variance is the difference in budgeted contribution margin for actual market size in units caused solely by actual market share being different from budgeted market share.

An unfavorable sales-mix variance would most likely be caused by ________.

Today,companies are simplifying their cost systems and moving toward less-detailed and less-complex cost allocation bases.

The sales-volume variance is subdivided into ________.

Under the cause and effect criterion,reasonableness is a matter of judgment rather than an operational criterion.

The sales-mix variance will be favorable when ________.

Which of the following illustrates a purpose for allocating costs to cost objects?

The Manager and Management Accounting

An Introduction to Cost Terms and Purposes

Cost-Volume-Profit Analysis

Job Costing

Activity-Based Costing and Activity-Based Management

Master Budget and Responsibility Accounting

Flexible Budgets, direct-Cost Variances, and Management Control

Flexible Budgets, overhead Cost Variances, and Management Control

Inventory Costing and Capacity Analysis

Determining How Costs Behave

Decision Making and Relevant Information

Strategy, balanced Scorecard, and Strategic Profitability Analysis

Pricing Decisions and Cost Management

Allocation of Support-Department Costs, common Costs, and Revenues

Cost Allocation: Joint Products and Byproducts

Process Costing

Spoilage, rework, and Scrap

Balanced Scorecard: Quality and Time

Inventory Management, just-In-Time, and Simplified Costing Methods

Capital Budgeting and Cost Analysis

Management Control Systems, transfer Pricing, and Multinational Considerations

Performance Measurement, compensation, and Multinational Considerations

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