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Fort Co produces and sells three models of family car: a basic model (the Drastic), an
upgraded model (the Bomber) and a deluxe model (the Cracker). All of the cars are priced to
achieve a 6% mark up on standard cost. For the month of June, Fort Co budgeted to sell
30,000 units of the Drastic and so have 10% market share of the budgeted sales at a price of
$10,600 each. Fort Co. actually achieved a 15% share of the market, though the market had
actually contracted by 5%.
The following information is available for July.
Drastic Bomber Cracker
Sales units:
– Budgeted 27,000 15,000 18,000
– Actual 26,000 16,000 14,000Budgeted sales price $10,600 $13,250 $16,960
1 Which option correctly fills the gaps in the paragraph?
“The difference between the sales quantity and _____________ variances is that the
standard _______________is considered in the former. The difference between
standard and actual is ________________.”
A volume, mix, ignored
B price, mix, calculated
C volume, quantity, ignored
D price, quantity, calculatedCan you please explain the meaning of what is the question is trying to ask and how are the options filled in the blanks.
“The difference between the sales quantity and _____________ variances is that the
standard _______________is considered in the former. The difference between
standard and actual is ________________.”Is it?
The difference between the sales quantity and volume variances is that the
standard mix is considered in the former. The difference between
standard and actual is ignored.or
The difference between the sales quantity and price variances is that the
standard mix is considered in the former. The difference between
standard and actual is calculated.or
The difference between the sales quantity and volume variances is that the
standard quantity is considered in the former. The difference between
standard and actual is ignored.or
The difference between the sales quantity and price variances is that the
standard quantity is considered in the former. The difference between
standard and actual is calculated.A volume, mix, ignored
B price, mix, calculated
C volume, quantity, ignored
D price, quantity, calculatedCan you figure it out?
It is a statement made about sales variances – you have to read it and fill in the blanks
The right answer is A, can you please justify why the answer is A and not other options..How to identify ?
As i have said.
It is a statement made about sales variances – you have to read it and fill in the blanks
The difference between the sales quantity and “volume” variances is that the
standard “mix” is considered in the former. The difference between
standard and actual is “ignored”.This is not a past exam question
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