Answered

Explore Westonci.ca, the top Q&A platform where your questions are answered by professionals and enthusiasts alike. Get immediate and reliable solutions to your questions from a community of experienced professionals on our platform. Get quick and reliable solutions to your questions from a community of experienced experts on our platform.

ADVANCED COSTING AND MANAGEMENT ACCOUNTING

A car engine manufacturer is trying to make an assessment of its operations for the past year. The
entity operates a standard marginal costing system and manufactures a state-of-the-art engine for
which the following standard revenue and cost data per unit of product is available:
Selling price $60.00
Direct material A 2.5 kg at $8.50 per kg
Direct material B 1.5 kg at $6.00 per kg
Direct labour 0.45 hrs. at $30.00 per hour
Actual data for the twelve-month period was as follows:
Sales and production 48,000 units of the blaster were produced and sold for $2,904,000
Direct material A 121,900 kg were used at a cost of $1,005,675
Direct material B 67,200 kg were used at a cost of $420,000
Direct labour Employees worked for 18,900 hours, but 19,200 hours were paid at a cost

of $585,600.

Budgeted sales for the period were 50,000 units of Product Blaster. A recession last year meant
that the market for the product declined by 5%.
Required:
(a) Calculate the following variances.
(i) Sales volume variance.

Sagot :

anthougo

The Sales Volume Variance of the car manufacturer for the twelve-month period is $96,000.

What is the sales volume variance?

The sales volume variance measures the financial impact of not meeting or exceeding the budgeted sales for a period.

It can be computed by finding the difference between actual and budgeted sales quantities and then multiplied by the unit selling price.

Data and Calculations:

Budgeted sales units = 50,000

Actual sales units = 48,000

Sales price per unit = $60

Actual sales revenue = $2,904,000

Budgeted sales revenue = $3,000,000 ($60 x 50,000)

Sales volume variance = $96,000 ($3,000,000 - $2,904,000)

Thus, the Sales Volume Variance is $96,000.

Learn more about determining the sales volume variances at https://brainly.com/question/4127264

#SPJ1

We appreciate your visit. Hopefully, the answers you found were beneficial. Don't hesitate to come back for more information. Thanks for using our service. We're always here to provide accurate and up-to-date answers to all your queries. We're glad you chose Westonci.ca. Revisit us for updated answers from our knowledgeable team.