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Question - Jackson plc makes and sells three types of fan for which the following budget/standard information and actual information are available for a four-week period.
Model
Budgeted sale (unit)
Standard unit data
Selling price ($)
Variable cost ($)
Actual sales (unit)
Superb
25,000
15
4
28,000
Excellent
35,000
12
2.5
31,000
Good
20,000
10
2.2
19,000
Budgeted fixed costs are $160,000 for the four-week period. Jackson plc allocates fixed costs on the basis of budgeted units of sale in calculating expected net profit.
Required - Calculate the sales mix and sales quantity variances for each model and in total for the four-week period by using expected net profit as the variance valuation basis.
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