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Sales quantity variance

Nnaheeda6y ago
Hello sir, I'm facing a problem in solving this question Bloom limited was the subject of the following press story : yellow sells two types of squash ball, the type A and the type B . The standard contribution from the these balls is $4 and $5 respectively and the standard profit per ball is $1.50 and $2.40 respectively . The budget was to sell 5 type A balls for every 3 type B balls . Actual sales were up 20,000 at 240,000 balls with type A balls being 200,000 of that total. Yellow values it’s stock of balls at std marginal cost. What is the Favourable sales quantity variance I understand how the Actual sales at standard mix But i dont understand how to get the budgeted sales at standard mix Ur help will be highly appreciated Thanks
John MoffatJohn MoffatTutor6y ago#1
The total actual sales were 240,000 balls. This was up 20,000, so the total budget sales must have been 220,000. The standard mix was 5A and 3 B for every 8 balls. Therefore the budget sales of A was 5/8 x 220,000 and for B was 3/8 x 220,000
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