for Hiro Corporation

Flexible Budget: Static Budget:

Actual Units Actual Units Budgeted Units
of All Glasses Sold of All Glasses Sold of All Glasses Sold
 Actual Sales Mix  Budgeted Sales Mix  Budgeted Sales Mix
 Budgeted  Budgeted  Budgeted
Contribution Contribution Contribution
Margin per Unit Margin per Unit Margin per Unit
Panel A: (1,900  0.6)  $5 (1,900  0.75)  $5 (2,300  0.75)  $5
Plain 1,140  $5 1,425  $5 1,725  $5
$5,700 $7,125 $8,625
$1,425 U $1,500 U
Sales-mix variance Sales-quantity variance
$2,925 U
Sales-volume variance

Panel B: (1,900  0.4)  $12 (1,900  0.25)  $12 (2,300  0.25)  $12
Chic 760  $12 475  $12 575  $12
$9,120 $5,700 $6,900
$3,420 F $1,200 U
Sales-mix variance Sales-quantity variance
$2,220 F
Sales-volume variance

Panel C: $14,820 $12,825 $15,525

All Glasses $1,995 F $2,700 U
Total sales-mix variance Total sales-quantity variance
$705 U
Total sales-volume variance

F = favorable effect on operating income; U = unfavorable effect on operating income