I just need to reference numbers for the calculations
how to send my question with excel attachment ?
Use with Excel
The TV Corporation manufactures 2 types of TVs. The Basic TV
and the Deluxe TV. Budgeted and actual annual operating data areas follows:
Static Budget
Basic
Deluxe
Total
Number units Sold
60,000
40,000
100,000
Total Contribution Margin
$3,480,000
$3,444,000
$6,924,000
Budgeted CM per unit
$58.00
$86.10
Actual Results
Number units sold
59,850
45,150
105,000
Total Contribution Margin
$3,650,850
$3,612,000
$7,262,850
But, the actual industry volume was
300,000
Units
Prior to the beginning of the year, a consulting firm estimatedthe total volume
for volume of the Basic and Deluxe industry category to be
310,000
Units
Required:
Calculate the following information and variances on theworksheet entitled analysis. I have tried to give some helpfulhints.
Use the contribution margin approach in the following salesvariance analysis that follows.
a. Calculate the Static-budget variance.
I have tried to set up a model to use on the analysisworksheet.
Look at Exhibit 14-11 p.571
b. Calculate the contribution margin for the flexiblebudget.
c. Calculate the flexible budget variance.
d. Calculate the sales-volume variance.
e. Compute the actual sales-mix
f. Compute the budgeted sales-mix
g . Compute the sales-mix variance for each product andthen the total sales-mix variance like the table shown onpage 572. I have set up the table for you to fill in.
h. Compute the sales-quantity variance by type of machine andtotal
if total actual quantity is greater than total budgeted unitsthe sales-quantity will always be F and the opposite will occurwhen actual is less than budgeted).
i. Compute the market-share variance
j. Compute the market-size variance.
4
k. Comment on the results of the above variance analysis. Makesure your comments identify specific variances and
the impact of these variances on income.
Do not forget to use the IF function to determine if thevariance is favorable or unfavorable.
I used a formula approach like the author did and I expecteveryone to use cell references and use the Problem 2 worksheet asyour data for cell references.
I will take off 5 pts. if you have not used cell references fromthe problem 2 worksheet as your reference for the calculations. Iwill take off 3 pts. for not using IF statements or 1/2 each.
When you are adding multiple variances, either use the SUMIFfunction or a nested IF.
Also, make sure you are using ABS function, since variancesshould not be positive and negative.
I have color coded some areas that should match, since you canuse these variances to check your work since they should equal eachother.
Comments in "K" are worth 1 pt. You need to clearly identifymultiple sales variance you have calculated and the impact inincome.
a. Calculate the Static-budget variance.
$338,850
F
Static Budgeted Variance =Actual total contribution margin lessStatic total Contribution margin
Look at level 1 in Panel C in exhibit 14-11.
b. Calculate the contribution margin for the flexiblebudget.
Basic
Deluxe
Total
Budgeted contribution margin per unit
$58
$86
Do not Total
Actual Number of units sold
Do not Total
Flexible -Budget Contribution Margin
c. Calculate the flexible budget variance.
d. Calculate the sales-volume variance.
Check Figure: static budget variance=flexible budget
variance+Sales volume Variance
Basic
Deluxe
e. Calculate the Actual sales mix:
f. Calculate the Budgeted sales mix:
g . Compute the sales-mix variance for each product and then thetotal sales-mix variance like the table shown on page 572. I haveset up the table for you to fill in.
Actual Units of All products sold
(Actual sales-mix%-Budgeted Sales Mix%
Budgeted Contribution Margin per unit
Sales-Mix Variance
Basic
Deluxe
g. Total Sales mix variance
Compute the sales-quantity variance by type of product andtotal.
Basic
Deluxe
h. Total Sales quantity variance
Check Figure: Sales-volume variance=Sales mixvariance+Sales Quantity Variance
Calculate the Actual market share:
Calculate the Budgeted market share:
Calculate the budgeted contribution margin
per composite unit of budgeted mix
Lastly:
I. Market-share Variance
j. Compute the market-size variance.
Check Figure: Sales-quantity variance=Market-sharevariance+Market size Variance
k. Comment on the results of the above variance analysis. Makesure your comments identify specific variances and the impact ofthese variances on income.
I just need to reference numbers for the calculations
how to send my question with excel attachment ?
Use with Excel | |||||||||||||
The TV Corporation manufactures 2 types of TVs. The Basic TV | |||||||||||||
and the Deluxe TV. Budgeted and actual annual operating data areas follows: | |||||||||||||
Static Budget | Basic | Deluxe | Total | ||||||||||
Number units Sold | 60,000 | 40,000 | 100,000 | ||||||||||
Total Contribution Margin | $3,480,000 | $3,444,000 | $6,924,000 | ||||||||||
Budgeted CM per unit | $58.00 | $86.10 | |||||||||||
Actual Results | |||||||||||||
Number units sold | 59,850 | 45,150 | 105,000 | ||||||||||
Total Contribution Margin | $3,650,850 | $3,612,000 | $7,262,850 | ||||||||||
But, the actual industry volume was | 300,000 | Units | |||||||||||
Prior to the beginning of the year, a consulting firm estimatedthe total volume | |||||||||||||
for volume of the Basic and Deluxe industry category to be | 310,000 | Units | |||||||||||
Required: | |||||||||||||
Calculate the following information and variances on theworksheet entitled analysis. I have tried to give some helpfulhints. | |||||||||||||
Use the contribution margin approach in the following salesvariance analysis that follows. | |||||||||||||
a. Calculate the Static-budget variance. | I have tried to set up a model to use on the analysisworksheet. | Look at Exhibit 14-11 p.571 | |||||||||||
b. Calculate the contribution margin for the flexiblebudget. | |||||||||||||
c. Calculate the flexible budget variance. | |||||||||||||
d. Calculate the sales-volume variance. | |||||||||||||
e. Compute the actual sales-mix | |||||||||||||
f. Compute the budgeted sales-mix | |||||||||||||
g . Compute the sales-mix variance for each product andthen the total sales-mix variance like the table shown onpage 572. I have set up the table for you to fill in. | |||||||||||||
h. Compute the sales-quantity variance by type of machine andtotal | |||||||||||||
if total actual quantity is greater than total budgeted unitsthe sales-quantity will always be F and the opposite will occurwhen actual is less than budgeted). | |||||||||||||
i. Compute the market-share variance | |||||||||||||
j. Compute the market-size variance. | 4 | ||||||||||||
k. Comment on the results of the above variance analysis. Makesure your comments identify specific variances and | |||||||||||||
the impact of these variances on income. | |||||||||||||
Do not forget to use the IF function to determine if thevariance is favorable or unfavorable. | ||||||
I used a formula approach like the author did and I expecteveryone to use cell references and use the Problem 2 worksheet asyour data for cell references. | ||||||
I will take off 5 pts. if you have not used cell references fromthe problem 2 worksheet as your reference for the calculations. Iwill take off 3 pts. for not using IF statements or 1/2 each. | ||||||
When you are adding multiple variances, either use the SUMIFfunction or a nested IF. | ||||||
Also, make sure you are using ABS function, since variancesshould not be positive and negative. | ||||||
I have color coded some areas that should match, since you canuse these variances to check your work since they should equal eachother. | ||||||
Comments in "K" are worth 1 pt. You need to clearly identifymultiple sales variance you have calculated and the impact inincome. | ||||||
a. Calculate the Static-budget variance. | $338,850 | F | ||||
Static Budgeted Variance =Actual total contribution margin lessStatic total Contribution margin | ||||||
Look at level 1 in Panel C in exhibit 14-11. | ||||||
b. Calculate the contribution margin for the flexiblebudget. | ||||||
Basic | Deluxe | Total | ||||
Budgeted contribution margin per unit | $58 | $86 | Do not Total | |||
Actual Number of units sold | Do not Total | |||||
Flexible -Budget Contribution Margin | ||||||
c. Calculate the flexible budget variance. | ||||||
d. Calculate the sales-volume variance. | ||||||
Check Figure: static budget variance=flexible budget | ||||||
variance+Sales volume Variance | ||||||
Basic | Deluxe | |||||
e. Calculate the Actual sales mix: | ||||||
f. Calculate the Budgeted sales mix: | ||||||
g . Compute the sales-mix variance for each product and then thetotal sales-mix variance like the table shown on page 572. I haveset up the table for you to fill in. | ||||||
Actual Units of All products sold | (Actual sales-mix%-Budgeted Sales Mix% | Budgeted Contribution Margin per unit | Sales-Mix Variance | |||
Basic | ||||||
Deluxe | ||||||
g. Total Sales mix variance | ||||||
Compute the sales-quantity variance by type of product andtotal. | ||||||
Basic | ||||||
Deluxe | ||||||
h. Total Sales quantity variance | ||||||
Check Figure: Sales-volume variance=Sales mixvariance+Sales Quantity Variance | ||||||
Calculate the Actual market share: | ||||||
Calculate the Budgeted market share: | ||||||
Calculate the budgeted contribution margin | ||||||
per composite unit of budgeted mix | ||||||
Lastly: | ||||||
I. Market-share Variance | ||||||
j. Compute the market-size variance. | ||||||
Check Figure: Sales-quantity variance=Market-sharevariance+Market size Variance | ||||||
k. Comment on the results of the above variance analysis. Makesure your comments identify specific variances and the impact ofthese variances on income. | ||||||
