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babyboy2323
Jun 1, 2014, 04:28 PM
Problem 21–2. The Bradley Company has just completed its first year of operations. A condensed income statement follows, showing actual and standard amounts and the variances:
http://online.vitalsource.com/books/0077823966/content/image/I0077823966_c21_tb0006.jpg
Required:
The president of Bradley Company has asked you as controller for the following data:


a. How much of the variance in income was due to the fact that we sold less than expected of Product B and more of Product A?
b. What would have happened to income if we had produced the number of units expected? 657658
c. What would have happened to the total gross margin variance if we had sold the number of units of both A and B that we expected to sell, but at the actual selling prices per unit?
d. What is the variance due to the fact that actual selling prices were less than expected? (Product A sold for $5.50 per unit.)

paraclete
Jun 2, 2014, 05:21 AM
well what's stopping you this is basic variance analysis