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 $ 243,000 $ 374,000 $ 617,000 Variable Costs 146,000 149,600 295,600 Contribution Margin $ 97,000 $ 224,400 $ 321,400 Fixed costs 130,000 108,000 238,000 Operating Income (Loss) $ (33,000 ) $ 116,400 $ 83,400 Selling Price per unit $ 100 $ 50 The following actual operating results were reported after the year was over: Product X Product Y Total Sales $ 366,800 $ 546,800 $ 913,600 Variable Costs 203,500 224,500 428,000 Contribution Margin $ 163,300 $ 322,300 $ 485,600 Fixed costs 210,400 116,500 326,900 Operating Income (Loss) $ (47,100 ) $ 205,800 $ 158,700 Units Sold 3,170 9,850 The sales quantity variance for Product Y is:

Answer 1

The sales quantity variance for Product Y is $139,250.

Step-by-step explanation:

The sales quantity variance for Product Y can be calculated by subtracting the budgeted quantity from the actual quantity sold and multiplying it by the budgeted selling price per unit.

So, the sales quantity variance for Product Y would be:

(9,850 units - 7,000 units) x $50 = $139,250.

Answer 2

Nappon Co.

The sales quantity variance for Product Y is:

= 740 units.

Step-by-step explanation:

a) Data and Calculations:

Master Budget for the year

Product X Product Y Total

Sales $ 243,000 $ 374,000 $ 617,000

Variable Costs 146,000 149,600 295,600

Contribution Margin $ 97,000 $ 224,400 $ 321,400

Fixed costs 130,000 108,000 238,000

Operating Income (Loss) $ (33,000 ) $ 116,400 $ 83,400

Selling Price per unit $ 100 $ 50

Units sold 2,430 7,480

Actual Performance Results:

Product X Product Y Total

Sales $ 366,800 $ 546,800 $ 913,600

Variable Costs 203,500 224,500 428,000

Contribution Margin $ 163,300 $ 322,300 $ 485,600

Fixed costs 210,400 116,500 326,900

Operating Income (Loss) $ (47,100 ) $ 205,800 $ 158,700

Units Sold 3,170 9,850

Sales Price $115.71 $55.51

The sales quantity variance for Product Y is:

= (Actual quantity sold - Budgeted quantity)

= 3,170 - 2,430

= 740 units