Sales-Mix Variance = $250,000 (F),sales-Volume Variance = $4,50,000 (U),flexible-Budget Variance

question 150

Multiple Choice

Sales-mix variance = $250,000 (F) ,sales-volume variance = $4,50,000 (U) ,flexible-budget variance = $200,000(F) ,market-size variance = $30,000(U) ,calculate the sales-quantity variance.

• A) $170,000 (U)
• B) $200,000 (U)
• C) $30,000 (U)
• D) $700,000 (U)

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Definitions:

Raw Materials Inventory

The total cost of all the materials that are used in the production of goods, not yet processed or in the production process.

Job-Order Costing

An accounting method that assigns costs to specific units or batches of production, allowing for detailed tracking of expenses.

Ending Balance

The final amount in an account at the end of a financial reporting period, after all adjustments have been made.

Work in Process Inventory

Goods that are in various stages of the production process but are not yet finished products.