use the information below to answer the following question s special tea products st 4302782
Use the information below to answer the following question(s).
Special Tea Products (STP) has an exclusive contract with Tea Distributors. Two brands of Teas are imported, Strong and Mild, and sold to retail outlets. The monthly budget for the contract is based on a combination of last year's performance, a forecast of general industry sales, and the company's expected share of the Canadian market for imported Tea. The following information is provided for the month of May:

Budgeted Strong 
Mild 
Actual Strong 
Mild 
Price per kg 
$2.00 
$3.00 
$2.50 
$2.50 
Variable cost /kg 
1.00 
1.50 
1.00 
2.00 
Cont. margin 
$1.00 
$1.50 
$1.50 
$0.50 





Sales (in kg) 
2,000 
1,500 
1,700 
1,800 
Budgeted fixed costs are $1,750. Actual fixed costs are $2,000.
21) What is the static budget variance (contribution margin) for Mild Tea?
A) $2,250 U
B) $2,250 F
C) $900 U
D) $1,350 F
E) $1,350 U
22) What is the STP salesvolume variance (contribution margin) for Strong tea?
A) $600 favourable
B) $600 unfavourable
C) $900 favourable
D) $900 unfavourable
E) $300 unfavourable
23) What is the STP total staticbudget variance for revenues?
A) $50 favourable
B) $250 favourable
C) $50 unfavourable
D) $250 unfavourable
E) $800 unfavourable
24) What is the STP total flexiblebudget variance for revenues?
A) $50 favourable
B) $50 unfavourable
C) $900 favourable
D) $800 favourable
E) $250 unfavourable
25) What is the STP total salesvolume variance (contribution margin) for May?
A) $300 favourable
B) $300 unfavourable
C) $150 favourable
D) $150 unfavourable
E) $750 unfavourable
26) What is the STP total salesquantity variance for revenues?
A) $0
B) $150.00 unfavourable
C) $150.00 favourable
D) $300.00 unfavourable
E) $450.00 favourable
27) What is the STP total salesmix variance for contribution margin?
A) $0
B) $150 unfavourable
C) $150 favourable
D) $300 favourable
E) $450 favourable
28) If the marketsize variance is $650 F, the salesmix variance is $500 F, the flexible budget variance is $9,250 F, and the static budget variance is $8,000 U, which of the following is true?
A) The market share variance is $18,400 U.
B) The sales volume variance is $17,250 F.
C) The salesquantity variance is $18,400 U.
D) The sales volume variance is $17,750 U.
E) The market share variance is $17,250 U.
29) Fresh Bread Company sells a special mix of wheat bread. If the expected output equals the actual output, the salesvolume variance
A) will be negative.
B) will be positive.
C) will be favourable.
D) will be unfavourable.
E) will be zero.
30) The difference between (the budgeted contribution margin for the budgeted sales mix and budgeted volume) and (the budgeted contribution margin for the budgeted sales mix and the actual volume) is the
A) sales mix variance.
B) sales quantity variance.
C) salesvolume variance.
D) market size variance.
E) market share variance.