Answer the Following Questions Using the Information Below:
the Corata

question 61

Multiple Choice

Answer the following questions using the information below:
The Corata Appliance Manufacturing Corporation manufactures two vacuum cleaners, the Standard and the Super. The following information was gathered about the two products:
$\begin{array}{lrr}&\text { Standard }&\text { Super }\\\text { Bud geted sales in units } & 2,400 & 600 \\\text { Bud geted selling price } & \$ 600 & \$ 1,700 \\\text { Bud geted contribution margin per unit } & \$ 400 & \$ 1,050 \\\text { Actual sales in units } & 2,800 & 1,200 \\\text { Actual selling price } & \$ 650 & \$ 1,680\end{array}$
-What is the total sales-mix variance in terms of the contribution margin?

• A) $290,000 favorable
• B) $260,000 favorable
• C) $530,000 favorable
• D) $790,000 favorable

---

Definitions:

Allocation Base

A measure or statistic used to distribute costs among different departments or activities, typically related to cost accounting practices.

Departmental Overhead Rate

The speed at which overhead expenses are distributed to goods or services according to activities specific to each department.

Machine Hours

The total number of hours that machinery is in operation during a particular period.

Mixing Department

A specific section within a manufacturing process where ingredients or components are combined to produce a final product.