Oxford Co. produces and sells two lines of t-shirts, Classic and Mod. Oxford provides the following...

Oxford Co. produces and sells two lines of t-shirts, Classic and Mod. Oxford provides the following data. Compute the sales price and the sales volume variances for each product.

	Budget	Actual
Unit sales price – Classic ….	$15	$16
Unit sales price–Mod …….	$20	$19
Unit sales–Classic …………	2,400	2,500
Unit sales–Mod …………..	2,000	1,900

Expert Solution

Particulars	Classic	Mod
Actual selling price	16	19
Less: standard price	(15)	(20)
Variance per unit	1	(1)
× units sold	2,500	1,900
Sales price variance	2,500	(1,900)

Actual sales	2,500	1,900
Less: standard	(2,400)	(2,000)
Volume difference	100	(100)
× standard price	15	20
Sales volume variance	1,500	(2,000)

ekkarill92 answered 1 year ago

Tiger Pride produces two product lines: Tminus−shirts and Sweatshirts. Product profitability is analyzed as follows: T-SHIRTS...

Tiger Pride produces two product lines: Tminus−shirts and Sweatshirts. Product profitability is analyzed as follows: T-SHIRTS SWEATSHIRTS Production and sales volume 72,000 units 40,000 units Selling price $18.00 $29.00 Direct material $1.90 $5.00 Direct labor $ 4.20$4.20 $7.20 Manufacturing overhead $ 4.40$4.40 $3.00 Gross profit $7.50 $13.80 Selling and administrative $3.70 $7.00 Operating profit $3.80 $6.80 Tiger Pride's managers have decided to revise their current assignment of overhead costs to reflect the following ABC cost information: Activity Activity cost Activityminus−cost...

Company Gamma produces and sells plain t-shirts but is considering entering the market of coloured t-shirts....

Company Gamma produces and sells plain t-shirts but is considering entering the market of coloured t-shirts. The plain t-shirts produced by Company Gamma costs $1 per unit and are sold for $5 per unit. If Company Gamma starts producing and selling coloured t-shirts, the cost is expected to be $1.20 per unit and sold for $6 per unit. Required: Show whether it is worth processing the plain t-shirts into coloured t-shirts. Company Gamma has found a more efficient way of...

Titan Pride produces two product lines: T-shirts and Sweatshirts. The company has used a simple costing...

Titan Pride produces two product lines: T-shirts and Sweatshirts. The company has used a simple costing system since its inception. The budgeted factory overhead totals $242,000 and is allocated on the basis of 121,000 direct labor hours (DLHs). Additional production information for the two products is as follows: T-SHIRTS SWEATSHIRTS Production volume 60,000 units 35,000 units DHLs (per unit) 1.2 1.4 Direct costs (per unit) $ 6.50 $ 8.20 The company is currently considering implementing an ABC system to determine...

Oxford Street Apparel produces and sell two lines of business suits; the European and the Legacy....

Oxford Street Apparel produces and sell two lines of business suits; the European and the Legacy. The following monthly data is provided in the table below. In addition the firm's budgeted net income is $45,000 per month. Calculate the firm's fixed cost and select the answer below that best matches yours. European Legacy Estimated unit sales per month 500 1000 Selling price $200 $175 Variable manufacturing costs $110 $100 Variable selling and administrative costs $10 $10 a. $0. The firm...

Shelby Boutique Dress produces two product lines: T-shirts and Sweatshirts. Recent Product Profitability Report prepared by...

Shelby Boutique Dress produces two product lines: T-shirts and Sweatshirts. Recent Product Profitability Report prepared by the accountant follows: T-SHIRTS SWEATSHIRTS Production and sales volume units 60,000 35,000 Selling price $17.00 $30.00 Direct material $2.50 $6.20 Direct labor $4.50 $7.22 Factory overhead $2.55 $4.08 Cost per Unit (cost to make a unit) $9.55 $17.50 Gross profit (price minus unit cost) $7.45 $12.50 Selling and administrative costs $4.00 $7.00 Profit per unit $3.45 $5.50 Tom, the manager in charge of Sweatshirt operation, has raised concerns about the credibility of the accountant’s Product Profitability Report. Specifically,...

Selma produces t-shirts. From the consumers' perspective, her t-shirts are not different from t-shirts offered by...

Selma produces t-shirts. From the consumers' perspective, her t-shirts are not different from t-shirts offered by other sellers. Selma sells her t-shirts at the going market price of $8 per t-shirt. Her total variable cost is $25 when she produces four t-shirts and $32 when she produces five t-shirts. Her total fixed cost is $20. What is Selma's marginal revenue from selling the fifth t-shirt? Question 36 options: $8 $10.40 $12 $7 ..

Q1) The Buffet Company produces and sells Parrot-head t-shirts. Income statements for two activity levels are...

Q1) The Buffet Company produces and sells Parrot-head t-shirts. Income statements for two activity levels are provided below: Unit Volumes 40,000 60,000 Revenue $300,000 $450,000 Less cost of goods sold 120,000 180,000 Gross margin $180,000 $270,000 Less operating expenses: Salaries and commissions $40,000 $ 50,000 Advertising expenses $60,000 $ 60,000 Administrative expenses $25,000 $ 25,000 Total operating expenses $125,000 $135,000 Net income $55,000 $ 135,000 Required: Identify the mixed expenses. Use the high-low method to separate...

Graphic Tees is a design company that sells custom printed t-shirts. The firm sells printed t-shirts...

Graphic Tees is a design company that sells custom printed t-shirts. The firm sells printed t-shirts under a block pricing scheme that charges $16 per t-shirt if the customer buys up to 10 t-shirts and $13 if they buy 11 to 20 t-shirts. The demand curve is Q = 1200 - 50P, and the marginal cost of a t-shirt is $7. What are the profits for Graphic Tees under this block pricing scheme?

Henna Co. produces and sells two products, T and O. It manufactures these products in separate...

Henna Co. produces and sells two products, T and O. It manufactures these products in separate factories and markets them through different channels. They have no shared costs. This year, the company sold 43,000 units of each product. Sales and costs for each product follow. Product T Product O Sales $ 761,100 $ 761,100 Variable costs 608,880 76,110 Contribution margin 152,220 684,990 Fixed costs 33,220 565,990 Income before taxes 119,000 119,000 Income taxes (30% rate) 35,700 35,700 Net income $...

Letter Co. produces and sells two products, T and O. It manufactures these products in separate...

Letter Co. produces and sells two products, T and O. It manufactures these products in separate factories and markets them through different channels. They have no shared costs. This year, the company sold 48,000 units of each product. Sales and costs for each product follow. Product T Product O Sales $ 825,600 $ 825,600 Variable costs 577,920 165,120 Contribution margin 247,680 660,480 Fixed costs 113,680 526,480 Profit before taxes 134,000 134,000 Income taxes (32% rate) 42,880 42,880 Net profit $...

Question