Meaning of Sales Mix Variance

Sales mix variance is the part of sales volume variance which happens due to difference between standard value of actual mix and standard value of revised mix.

sales mix variance formula

SMV = Standard value of actual mix - standard value of revised mix

Sales Mix Variance Example

The budgeted and actual sales for a period in respect of two products are given below.

 Product Budget Actual A B Quantity Price in \$ Quantity Price in \$ 1000 20 1300 21 2000 15 2300 14 3000 3600

Sales mix variance =

Standard Value of Actual Mix - Standard value of Revised standard mix

Product's revised mix = Std. quantity / total standard quantity X total actual quantity
Product A = 1000/3000 X 3600 = 1200 units
Product b = 2000 / 3000 X 3600 = 2400 units

SMV = { Product A 1300 X 20 + Product B 2300 X 15 ) - { Product A 1200 X 20 + Product B 2400 X 15 }
= (26000 + 34500 ) - ( 24000 + 36000 ) =  \$ 500  ( Favorable)

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Accounting Education: Sales Mix Variance
Sales Mix Variance
Accounting Education
http://www.svtuition.org/2012/05/sales-mix-variance.html
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