Cost Allocation, Customer Profitability and Sales Variance Analysis
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- Cost Allocation, Customer Profitability and Sales Variance Analysisaccounting-mcqs › cost-accounting-mcqs › cost-allocation-customer-profitability-and-sales-variance-analysis
- Published
- 27 Apr 2023
- Last updated
- 28 May 2026
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Given that the budgeted contribution margin based on the planned sales mix is $35,000 and the actual contribution margin from the actual sales mix is $27,000, what is the sales mix variance?
Multiple choice question for Cost Allocation, Customer Profitability and Sales Variance Analysis. Select an option, then review the explanation below.
Explanation
The sales mix variance is calculated as the difference between the budgeted contribution margin for the budgeted sales mix and the contribution margin for the actual sales mix. Here, it equals $35,000 minus $27,000, resulting in a variance of $8,000.
More Cost Allocation, Customer Profitability and Sales Variance Analysis MCQs
Practice related questions from the same subject.
- 1.Within the customer cost hierarchy, how are expenses related to specific customer support tasks categorized?
- 2.What is the static budget variance if the actual outcome is $2,500 while the planned budget was $2,200?
- 3.Within the customer cost hierarchy, how are the expenses related to all activities involved in selling one unit of a product categorized?
- 4.Which of the following is not considered a primary category of corporate expenses?
- 5.What is the term for allocating all customer-related expenses using various cost drivers or allocation bases?