Kyekyeku Company Retails Two Models of a Product: Model X

question 35

Multiple Choice

Kyekyeku Company retails two models of a product: Model X and Model Y. It considers both products to be close substitutes. The following data relate to the company's operations for last year: $\begin{array} { | l | r | r | r | } \hline & \text { Model X } & \text { Model Y } & \text { Total } \\\hline \text { Sales in Units: } & & & \\\hline \text { Budget } & 1,000 & 1,000 & 2,000 \\\hline \text { Actual } & 1,008 & 1,092 & 2,100 \\\hline \text { Contribution Margins per Unit: } & & & \\\hline \text { Budget } & \$ 30 & \$ 40 & \\\hline \text { Actual } & \$ 25 & \$ 38 & \\\hline \text { Market Volume in Units: } & & & \\\hline \text { Budget } & & & 40,000 \\\hline \text { Actual } & & & 52,500 \\\hline\end{array}$
- What were the sales mix variances for Model X and Model Y,respectively,for last year?

• A) $1,050 unfavourable and $1,596 unfavourable.
• B) $1,260 favourable and $1,680 unfavourable.
• C) $1,260 unfavourable and $1,680 favourable.
• D) $1,500 favourable and $2,000 favourable.

Understand and apply the concepts of standard cost systems.

Analyze and record the impact of manufacturing overhead cost on financial statements.

Calculate and interpret fixed and variable manufacturing overhead variances.

Identify and analyze the effects of direct labor cost variances.

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Definitions:

Unconscious Memories

Memories that are not within an individual's conscious awareness, often influencing behaviors and decisions without one's explicit understanding.

Cerebellum

The part of the brain at the back of the skull in vertebrates, which coordinates and regulates muscular activity.

Hippocampus

A major component of the brain, located in the medial temporal lobe, playing important roles in the consolidation of information from short-term memory to long-term memory, and in spatial memory that enables navigation.

Types Of Memories

The classification of memory into different types, such as short-term, long-term, procedural, and episodic memory.