Piper Products sold 412,000 units during the last period when industry volume totaled 2.86 million units. The company originally expected to sell 448,500 based on a budgeted market share of 15 percent. The budgeted selling price was $13 per unit. Budgeted variable costs were $5 per unit. Budget fixed costs were $1,830,000 and applied based on units produced. Required: Compute the sales activity variance, and break it down into market share variance and the industry volume variance. Note: Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option. Sales activity variance Market share variance Industry volume variance ++ EU U บ
Piper Products sold 412,000 units during the last period when industry volume totaled 2.86 million units. The company originally expected to sell 448,500 based on a budgeted market share of 15 percent. The budgeted selling price was $13 per unit. Budgeted variable costs were $5 per unit. Budget fixed costs were $1,830,000 and applied based on units produced. Required: Compute the sales activity variance, and break it down into market share variance and the industry volume variance. Note: Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option. Sales activity variance Market share variance Industry volume variance ++ EU U บ
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter18: Pricing And Profitability Analysis
Section: Chapter Questions
Problem 9CE: Budgeted unit sales for the entire countertop oven industry were 2,500,000 (of all model types), and...
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