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Variance Analysis - Practice

The document provides last month's budgeted and actual sales and margins for 3 products made by Beta Division. It also asks to determine gross margin mix, sales volume, and selling price variances as well as calculate the net gross margin variance directly and as a sum of the individual variance components.

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Dipak Nandeshwar
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28 views1 page

Variance Analysis - Practice

The document provides last month's budgeted and actual sales and margins for 3 products made by Beta Division. It also asks to determine gross margin mix, sales volume, and selling price variances as well as calculate the net gross margin variance directly and as a sum of the individual variance components.

Uploaded by

Dipak Nandeshwar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Beta Division of Gotham Industries, Inc. makes three products.

Last Month's budgeted and actual sales and margins are as follows:

Budget Actual
Unit Sales Unit Margin Unit Sales Unit Margin
Product 1 3200 10 2850 10.2
Product 2 1700 13 2500 12.58
Product 3 5100 9 4250 8.8
10000 10 10.2

Required: Determine the gross margin mix, sales volume, and selling price variances.
Calculate the net gross margin variance directly; then as a check if it equals the sum of
the three variances components calculated individually.

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