CASE Group 3

10-1 1.
2.
Vonny Cornelia (2018310678)
Dini Asrina (2018310779)
3. Yenni Zanuba A (2018310780)
I
Part A—February 1988
Prepare an analysis of variance from
profit budget assuming that the Temple
Division employed a variable standard
cost accounting system.
Separate the mix and volume variance into the
variance resulting from differences in market
penetration and variance resulting from
differences in industry volume. Make the
calculation for the variable cost system only.
Prepare an analysis of variance from
profit budget assuming that the Temple
Division used a full standard cost
accounting system. Under this
assumption, the actual cost of sales
amount would be $632,000.

678
 Selling Price Variance
Product
Total
A B C
Actual Volume 120 130 150 400
Actual Price per unit $0.95 $1.90 $2.80  
Budget Price per unit 1 2 3  

Actual over/(under) budget per unit (0.05) (0.10) (0.20)  

Favorable/(unfavorable) price variance (6) (13) (30) (49)

 Sales Mix and Volume Variance

Budgeted
Product Actual Volume Difference Unit Contribution Variance
Volume
A 120 100 20 $0.20 $4
B 130 100 30 $0.90 $27
C 150 100 50 $1.20 $60
Total 400       $91

678
 Mix Variance

Budgeted Mix at Actual

Product Budgeted Proportion Actual Sales Difference Unit Contribution Variance
Volume
A 1⁄3 133 120 (13) $0.20 $(2.67)
B 1⁄3 133 130 (3) $0.90 $(3.00)
C 1⁄3 133 150 17 $1.20 $20.00
Total   400 400     $14.33

 Sales Volume Variance

Product Budgeted Mix at Actual Volume Budgeted Volume Difference Unit Contribution Volume Variance

A 133 100 33 $0.20 $6.67

B 133 100 33 $0.90 $30.00
C 133 100 33 $1.20 $40.00
Total 400 300 100   $76.67

678
 Revenue Variances by Product
Product
  Total
A B C
Price variance $(6) $(13) $(30) $(49)
Mix variance $(3) $(3) $20 $14
Volume variance $7 $30 $40 $77
Total $(2) $14 $30 $42

678
 Industry Volume and Market Share Variances
A. Budgeted Sales Volume        
  Product
Total
  A B C
Estimated industry volume (units) 500 1667 3000
Budgeted market share 12% 20% 6% 10%
Budgeted volume (units) 100 100 100 300
B. Actual Market Share        
  Product
Total
  A B C
Actual industry volume, units 600 650 1500 2750
Actual sales (units) 120 130 150 400
Actual market share 20% 20% 10% 15%
C. Variance Due to Market Share        
  Product
Total
  A B C
(1) Actual sales (units) 120 130 150 400

(2) Budgeted shares at actual industry volume 72 130 90 292

(3) Difference 48 0 60 108
(4) Budgeted unit contribution $0.20 $0.90 $1.20 $2.30

(5) Variance due to market share $10 $- $72 $82

D. Variance Due to Industry Volume        
  Product
Total
  A B C
(1) Actual industry volume 600 650 1500 2750
(2) Budgeted industry volume 833 500 1667 3000
(3) Difference (233) 150 (167) (250)
(4) Budgeted market share 12% 20% 6%  
(5) (3 * 4) (28) 30 (10)  

$0.20 $0.90 $1.20  

(6) Unit contribution (budget)
(7) Total (5.59) 27.00 (12.02) 9.38

678
 Fixed-Cost Variances

Favorable or Unfavorable
  Actual Budget
Variance
Fixed overhead 80 75 (5)
Selling expense 57 50 (7)
Administrative expense 33 25 (8)
Total 170 150 (20)

678
 Variable Manufacturing Expense Variances

779
 Summary Peformance Report

779
 Analysis of variance in actual profit and budget profit

779
 Part B—March 1988
The actual cost of sales using full standard costing would be $340,500 in March.

 Selling Price Variances

779
 Sales Mix and Volume Variance

 Mix Variance

779
 Sales Volume Variance

 Revenue Variances by Product

779
 Industry Volume and Market Share Variances

780
 Fixed-Cost Variances

 Variable Manufacturing Expense Variances

780
 Summary Performance Report

780
 Analysis of Variance Between Actual Profits and Budgeted Profits

780
 II January 1988
Prepare an analysis of variance between actual profits and budgeted profits for January 1988.

 Analysis of Variance Between Actual Profits and Budgeted Profits

780
THANK YOU