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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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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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