Next Year's Budget for Howard, Inc At the End of the Year, the Total Fixed Costs

question 74

Essay

Next year's budget for Howard, Inc., a multi-product company, is given below: $\begin{array}{lcc}&\text { Product A } & \text { Product B }\\\text { Sales }&\$1,890,000&\$1,377,000 \\\text { Variable costs } &919,800&594,000\\\text { Fixed costs }&500,000&500,000\\\text {Net income } & 470,200&283,000 \\\text {Units}& 252,00 &108,000\\\text { Market share } & 12.5 \% & 20.0 \%\end{array}$

At the end of the year, the total fixed costs and the variable costs per unit were exactly as budgeted, but the following units per product line were sold. Howard analyzes the effects its sales variances have on the profitability of the company.
$$\begin{array} { c c c c } \text { Product Line } & \text { Units } & \text { Sales } & \text { Mkt share } \\\text { A } & 252,230 & \$ 1,848,579 & 15.0 \% \\\text { B } & 113,770 & \$ 1,479,010 & 17.0 \%\end{array}$$
Required:
(Be sure to indicate whether the variance is favorable or unfavorable.)
a. Compute the sales activity variance for each product.
b. Compute the market share variance for each product.
c. Compute the industry volume variance for each product.

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Definitions:

Sexual Variations

Refers to the diverse range of sexual practices, preferences, and identities beyond traditional norms and expectations.

Socially Approved

Refers to behaviors or practices that are accepted and endorsed by society or a specific community as appropriate or desirable.

American Sexual Behaviors

The range of sexual practices, norms, and attitudes observed and reported among individuals living in the United States, which vary widely across different cultural, ethnic, and social groups.

Sexual Expressions

Various ways in which individuals express their sexual feelings, desires, and identities, encompassing a range of behaviors, orientations, and practices.