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

question 73

Essay

The next year's budget for Canfield,Inc. ,a multi-product company,is given below: $$\begin{array} { | l | r | r | } \hline & \text { Product 1 } & \text { Product 2 } \\\hline \text { Sales } & \$ 1,890,000 & \$ 1,377,000 \\\hline \text { Variable costs } & 919,800 & 594,000 \\\hline \text { Fixed costs } & 500,000 & 500,000 \\\hline \text { Net income } &\underline{ \$ 470,200 }& \underline{ \$ 283,000} \\\hline \text { Units } & 252,000 & 108,000 \\\hline\end{array}$$
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.Canfield analyzes the effects its sales variances have on the profitability of the company. $$\begin{array} { | c | r | r | } \hline \text { Product Line } & \text { Units } & \text { Sales } \\\hline \text { A } & 252,230 & \$ 1,848,579 \\\hline \text { B } & 113,770 & \$ 1,479,010 \\\hline\end{array}$$ Required:
(Be sure to indicate whether the variance is favorable or unfavorable. )
a.Compute the sales activity variance for each product.b.Compute the sales mix variance for each product.c.Compute the sales quantity variance for each product.

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Definitions:

Interrole Conflict

A psychological conflict arising from opposing demands related to different roles played by an individual.

Values

Core beliefs or principles that guide an individual's behavior and decision-making process.

Attitude

A psychological tendency expressed by evaluating a particular entity with some degree of favor or disfavor.

Volatile Relationships

Relationships characterized by rapid, unpredictable changes in sentiment, potentially leading to conflicts or instability.