This objective test question contains a question type which will only appear in a computer-based exam, but this question provides valuable practice for all students whichever version of the exam they are taking. Bloom Limited was the subject of the following press story: Yellow sells two types of squash ball, the type
A、and the type B. The standard contribution from these balls is $4 and $5 respectively and the standard profit per ball is $1.50 and $2.40 respectively. The budget was to sell 5 type
A、balls for every 3 type
B、balls. Actual sales were up 20,000 at 240,000 balls with type
A、balls being 200,000 of that total. Yellow values its stock of balls at standard marginal cost. What is the value of the favourable sales quantity variance?
A、and the type B. The standard contribution from these balls is $4 and $5 respectively and the standard profit per ball is $1.50 and $2.40 respectively. The budget was to sell 5 type
A、balls for every 3 type
B、balls. Actual sales were up 20,000 at 240,000 balls with type
A、balls being 200,000 of that total. Yellow values its stock of balls at standard marginal cost. What is the value of the favourable sales quantity variance?
【参考答案及解析】
Total actual sales 240,000 Total budget sales 220,000 Difference 20,000 Average standard contribution $4.375 ((5 × 4) + (3 × 5))/8 = 4.375 Favourable variance is $87,500
Total actual sales 240,000 Total budget sales 220,000 Difference 20,000 Average standard contribution $4.375 ((5 × 4) + (3 × 5))/8 = 4.375 Favourable variance is $87,500