Variances

Question 1

Actual Results

Answer 1

ACTUAL units of all products sold * ACTUAL sales mix * ACTUAL CM per unit

Question 2

Flexible Budget

Answer 2

ACTUAL units of all products sold * ACTUAL sales mix * BUDGETED CM per unit

Question 3

Static Budget

Answer 3

BUDGETED units of all products sold * BUDGETED sales mix * BUDGETED CM per unit

Question 4

“Pre-static” Budget

Answer 4

ACTUAL units of all products sold * BUDGETED sales mix * BUDGETED CM per unit

Question 5

Static-budget Variance

Answer 5

Actual Results (see card) - Static Budget (see card)

Question 6

Flexible-budget Variance

Answer 6

Actual Results (see card) - Flexible Budget (see card)

Question 7

Sales-volume Variance

Answer 7

Flexible Budget (see card) - Static Budget (see card)
OR
(ACTUAL - BUDGETED # of units sold) * BUDGETED CM per unit

Question 8

Sales-mix Variance

Answer 8

ACTUAL units of all products sold * (ACTUAL sales mix % - BUDGETED sales mix %) * BUDGETED CM per unit
OR
Flexible Budget (see card) - “Pre-static Budget” (see card)

Question 9

Sales-quantity Variance

Answer 9

(ACTUAL units of all products sold - BUDGETED units of all products sold) * BUDGETED sales-mix percent * BUDGETED CM per unit
OR
“Pre-static” Budget (see card) - Static Budget (see card)

Question 10

Market share variance

Answer 10

ACTUAL market size in units * (ACTUAL - BUDGETED market share) * BUDGETED CM per composite unit for budgeted mix

Question 11

Market-size variance

Answer 11

(ACTUAL - BUDGETED market size in units) * BUDGETED market share * BUDGETED CM per composite unit for budgeted mix