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Allonby Foods processes frozen meals for sale in grocery and other retail outlets. Two versions are produced: The FlavorPak version has a budgeted price of $16 per case and a standard variable cost of $9 per case. The Gourmet version has a budgeted price of $29 per case and a standard variable cost of $18 per case. At the beginning of the year, the Marketing Group at Allonby estimated that the company would sell 60,420 cases of the FlavorPak version and 36,252 cases of the Gourmet version. The actual results for the year showed that 57,120 cases of the FlavorPak version and 38,080 cases of the Gourmet version were sold. Total revenues generated by sales of both versions amounted to $2,021,950 with $1,086,400 coming from the Gourmet version sales.

Allonby Foods processes frozen meals for sale in grocery and other retail outlets. Two versions are produced: The FlavorPak version has a budgeted price of $16 per case and a standard variable cost of $9 per case. The Gourmet version has a budgeted price of $29 per case and a standard variable cost of $18 per case. At the beginning of the year, the Marketing Group at Allonby estimated that the company would sell 60,420 cases of the FlavorPak version and 36,252 cases of the Gourmet version. The actual results for the year showed that 57,120 cases of the FlavorPak version and 38,080 cases of the Gourmet version were sold. Total revenues generated by sales of both versions amounted to $2,021,950 with $1,086,400 coming from the Gourmet version sales.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Exercise 17-31 (Algo) Sales Mix and Quantity Variances (LO 17-4) Allonby Foods processes frozen meals for sale in grocery and other retail outlets. Two versions are produced: The FlavorPak version has a budgeted price of $16 per case and a standard variable cost of $9 per case. The Gourmet version has a budgeted price of $29 per case and a standard variable cost of $18 per case. At the beginning of the year, the Marketing Group at Allonby estimated that the company would sell 60,420 cases of the FlavorPak version and 36,252 cases of the Gourmet version. The actual results for the year showed that 57,120 cases of the FlavorPak version and 38,080 cases of the Gourmet version were sold. Total revenues generated by sales of both versions amounted to $2,021,950 with $1,086,400 coming from the Gourmet version sales. Required: a. Compute the sales activity variance for the year. b. Compute the mix and quantity variances for the year. Complete this question by entering your answers in the tabs below. Required A Required B Compute the sales activity variance for the year. Note: Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option. Activity variance F U ▼ ed A Required B >
Transcribed Image Text:Exercise 17-31 (Algo) Sales Mix and Quantity Variances (LO 17-4) Allonby Foods processes frozen meals for sale in grocery and other retail outlets. Two versions are produced: The FlavorPak version has a budgeted price of $16 per case and a standard variable cost of $9 per case. The Gourmet version has a budgeted price of $29 per case and a standard variable cost of $18 per case. At the beginning of the year, the Marketing Group at Allonby estimated that the company would sell 60,420 cases of the FlavorPak version and 36,252 cases of the Gourmet version. The actual results for the year showed that 57,120 cases of the FlavorPak version and 38,080 cases of the Gourmet version were sold. Total revenues generated by sales of both versions amounted to $2,021,950 with $1,086,400 coming from the Gourmet version sales. Required: a. Compute the sales activity variance for the year. b. Compute the mix and quantity variances for the year. Complete this question by entering your answers in the tabs below. Required A Required B Compute the sales activity variance for the year. Note: Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option. Activity variance F U ▼ ed A Required B >
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