Reference no: EM131799617

Question - Industry Volume and Market Share Variances

Kay's auto products budgeted sales of 50,000 units of product B, assuming that the company would have 20 percent of 250,000 units sold in a particular market. The actual results were 45,000 units, based on a 15 percent share of a total market of 300,000 units. The budgeted contribution margin is $4 per unit.

Compute the sales activity variance, and break it down into market share and industry volume.

Question - Materials Mix and Yield Variances

Huron Group had the following direct materials data for its product:

Standard costs for one unit of output

Material Twinkle                            20 units of input at $20

Material Star                                 40 units of input at $30

During October, the company had the following results:

Units of output produced 2,000 units

Materials purchased and used

Material Twinkle                             44,000 units at $18

Material Star                                  76,000 units at $32

Compute materials priced and efficiency variance.

Compute materials mix and yield variances.

Question - Labor Mix and Yield Variance

Matt's Eat 'N Run has two categories of direct labor, unskilled, which costs $7.50 per hour, and skilled, which costs $15 per hour. Management has established standards per "equivalent friendly meal," which has been defined as a typical meal consisting of a hamburger, a drink, and French fries. Standards have been set as follows:

Skilled Labor                                   2 Minutes per equivalent meal

Unskilled Labor                                6 Minutes per equivalent meal

For the year, Matt's sold 180,000 equivalent friendly meals and incurred the following labor costs:

Skilled Labor              6,000 Hours        $92,000

Unskilled Labor           15,000 Hours      180,000

Compute labor price and efficiency variances.

Compute labor mix and yield variances.