The Next Year's Budget for Alton,Inc At the End of the Year,the Total Fixed Costs and

question 22

Essay

The next year's budget for Alton,Inc. ,is given below:

$$\begin{array} { | l | r | r | } \hline & \text { Procuct 1 } & \text { Procuct 2 } \\\hline \text { Sales } & \$ 945,000 & \$ 688,500 \\\hline \text { Variable costs } & 459,900 & 297,000 \\\hline \text { Fixed costs } & 300,000 & \underline { 300,000 } \\\hline \text { Net income } &\underline{ \$ 185,100} &\underline{ \$ 91,500} \\\hline \text { Units } & 126,000 & 54,000 \\\hline \text { Market share } & 12 \% & 20.0 \% \\\hline\end{array}$$ 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: $$\begin{array} { | c | r | r | r | } \hline \text { Product Line } & \text { Units } & \text { Sales } & \text { Mkt share } \\\hline 1 & 126,200 & \$ 958,579 & 16.0 \% \\\hline 2 & 56,800 & \$ 721,010 & 14.2 \% \\\hline\end{array}$$
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:

Agoraphobia

A condition where individuals experience extreme fear of places or situations where escape might be difficult or help might not be available, often leading to avoidance of open or enclosed spaces.

Avoid Being Outside

The preference or tendency to stay indoors, sometimes associated with anxiety disorders such as agoraphobia.

Obsession

Persistent, intrusive thoughts or impulses that cause distress or anxiety, often recognized as unreasonable but difficult to control.

Free-Floating Anxiety

Anxiety that is not focused on or linked to any specific object or situation, often manifesting as a persistent sense of unease.