Question

Electroline Ltd manufactures and sells three products AB, CD and EF. During 2014 the budgeted and actual results were presented to you the management accountant for analysis.

Budgeted Results

Product	Total Sales $	Volume /Units	Price$	Contribution margin per unit $	Total Contribution Margin
AB	1,500,000	1,000	1,500	700	700,000
CD	4,000,000	2,000	2,000	800	800,000
EF	1,000,000	1,000	1,000	600	600,000

Actual Results

Product	Total Sales $	Volume /Units	Price $	Contribution margin per unit $	Total Contribution Margin $
AB	1,260,000	900	1,400	600	540,000
CD	4,560,000	1,900	2,400	900	1,710,000
EF	1,484,000	1,400	1,060	720	1,008,000

Required

a) Sales margin price variance

b) Sales margin mixture variance

c)Sales margin volume variance

d)Sales margin quantity variance

e) Is it easier for management to have control over cost than revenues. Discuss

Answer 1