Question

Nappon Co. has two products named X and Y. The firm had the following master budget for the year just completed:

	Product X	Product Y	Total
Sales	$260,000	360,000	$620,000
Variable Costs	156,000	180,000	336,000
Contribution Margin	$104,000	$180,000	$284,000
Fixed Costs	130,000	108,000	238,000
Operating Income	($26,000)	$72,000	$46,000
Selling Price per unit	$130.00	$60.00

The following actual operating results were reported after the year was over:

	Product X	Product Y	Total
Sales	$202,500	$467,500	$670,000
Variable Costs	117,000	212,500	329,500
Contribution Margin	$85,500	$255,000	$340,500
Fixed Costs	140,000	108,000	248,000
Operating Income	($54,500)	$147,000	$92,500
Units Sold	1,500	8,500

1.The sales quantity variance for Product X is:

2. The selling price variance for Product × is:

3. The contribution margin sales volume variance for Product X is:

Answer 1