15-25 Sales-mix and sales-quantity varlances. Lofty Bread Ltd is a baking company that operates in Thailand. The company produces two types of bread-a full loaf and a mini loaf. A full loaf is 8 inches long and a mini loaf is 3 inches long. Each full loaf is sold for 850 and each mini loaf is sold for 830. Lofty's budget and actual figures for the last year were as follows: Budget Actual Number of valets: Full loafs 3,600 4,000 Mini loafs 2,000 3,980 Revenue 8240,000 8319400 Variable costs: B114,000 B122000 Wages 86,200 B 12,400 Baking materials Utilities 86,520 89,200 B126,720 B143 600 B113,280 B175,800 Contribution Fixed costs: B 36,800 B 36,800 Rent and rates B1390XX) B 76,480 Operating income

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
icon
Concept explainers
Question
Note: The currency of Thailand is the Thai Baht and the currency symbol is B.
The budgeted contribution to sales ratios for the two types of valet are 44.6% for full loafs and 55% for mini loafs.
Using the data provided for full valets and mini loafs, compute:
Required
1. The total sales-mix contribution variance.
2. The total sales-quantity contribution variance,
3. Briefly differentiate between sales-mix and sales-quantity variances.
Hio povidey the following information for
Transcribed Image Text:Note: The currency of Thailand is the Thai Baht and the currency symbol is B. The budgeted contribution to sales ratios for the two types of valet are 44.6% for full loafs and 55% for mini loafs. Using the data provided for full valets and mini loafs, compute: Required 1. The total sales-mix contribution variance. 2. The total sales-quantity contribution variance, 3. Briefly differentiate between sales-mix and sales-quantity variances. Hio povidey the following information for
15-25 Sales-mix and sales-quantity variances. Lofty Bread Ltd is a baking company that operates in Thailand. The company produces two types of bread-a full
loaf and a mini loaf. A full loaf is 8 inches long and a mini loaf is 3 inches long. Each full loaf is sold for 850 and each mini loaf is sold for 830. Lofty's budget and
actual figures for the last year were as follows:
Вudget
Actual
Number of valets:
Full loafs
3,600
4,000
Mini loafs
2,000
3,980
Revenue
8240,000
B319,400
Variable costs:
B114,000
B122,000
Wages
Baking materials
86,200
B 12,400
86520
$9,200
Utilities
B126,720
$143,600
BI13,280
B175,800
Contribution
Fixed costs:
B 36,800
$ 36,800
Rent and rates
B139.0XX)
B 76,480
Operating income
Note: The currencv of Thailand is the Thai Baht and the currenev svmbol is B
Transcribed Image Text:15-25 Sales-mix and sales-quantity variances. Lofty Bread Ltd is a baking company that operates in Thailand. The company produces two types of bread-a full loaf and a mini loaf. A full loaf is 8 inches long and a mini loaf is 3 inches long. Each full loaf is sold for 850 and each mini loaf is sold for 830. Lofty's budget and actual figures for the last year were as follows: Вudget Actual Number of valets: Full loafs 3,600 4,000 Mini loafs 2,000 3,980 Revenue 8240,000 B319,400 Variable costs: B114,000 B122,000 Wages Baking materials 86,200 B 12,400 86520 $9,200 Utilities B126,720 $143,600 BI13,280 B175,800 Contribution Fixed costs: B 36,800 $ 36,800 Rent and rates B139.0XX) B 76,480 Operating income Note: The currencv of Thailand is the Thai Baht and the currenev svmbol is B
Expert Solution
steps

Step by step

Solved in 4 steps

Blurred answer
Knowledge Booster
Budgeting
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education