Answer:
Sales mix variance= $71,400F
Explanation:
A sales mix variance occurs when products are sold in a mix different from the standard mix. It can be calculated as follows:
Step 1: Actual total quantity sold = 1,820 + 980 =2,800
Step 2: Divide the actual total quantity sold into standard mix
Standard- 2160/2160+54)×2,800=2,240
Super -(540/2160+540)×2,800=560
Step 3: calculate mix variance as tabulated below
Product Std mix Actual mix Mix var Cont. Magin Mix Vari
Standard 2,240 1,820 420U 80 33,600 U
Super 560 980 420 F 250 <u> 105,000 F</u>
Variance <u> 71,400F</u>
Sales mix variance= $71,400F
