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Robinson Company has two products, A and B. Robinsons budget for August follows: ...

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Accounting

Robinson Company has two products, A and B. Robinsons budget for August follows:
Master Budget
Product A Product B
Sales $ 240,000 $ 300,000
Variable cost 140,000180,000
Contribution margin $ 100,000 $ 120,000
Fixed cost 80,00040,000
Operating income $ 20,000 $ 80,000
Selling price $ 120 $ 50
On September 1, these operating results for August were reported:
Operating Results
Product A Product B
Sales $ 180,400 $ 341,120
Variable cost 106,600216,480
Contribution margin $ 73,800 $ 124,640
Fixed cost 80,00040,000
Operating income $ (6,200) $ 84,640
Units sold 1,6406,560
Required:
1. For each product, determine the following variances measured in dollars of contribution margin:
Product A Product B
a. Flexible-budget variance
b. Sales volume variance
c. Sales quantity variance
d. Sales mix variance

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