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 60,480 cases of the FlavorPak version and 36,288 cases of the Gourmet version. The actual results for the year showed that 57,180 cases of the FlavorPak version and 38,120 cases of the Gourmet version were sold. Total revenues generated by sales of both versions amounted to $2,025,950 with $1,090,400 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

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 60,480 cases of the FlavorPak version and 36,288 cases of the Gourmet version. The actual results for the year showed that 57,180 cases of the FlavorPak version and 38,120 cases of the Gourmet version were sold. Total revenues generated by sales of both versions amounted to $2,025,950 with $1,090,400 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

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter11: Strategic Cost Management

Section: Chapter Questions

Problem 21E: This year, Hassell Company will ship 4,000,000 pounds of chocolates to customers with total...

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This year, Hassell Company will ship 4,000,000 pounds of chocolates to customers with total order-filling costs of 900,000. There are two types of customers: those who order 50,000 pound lots (small customers) and those who order 250,000 pound lots (large customers). Each customer category is responsible for buying 1,500,000 pounds. The selling price per pound is 2 per lb for the 50,000 pound lot and 3 per lb for the larger lots, due to differences in the type of chocolate. ABC would likely assign order-filling costs to the customer type as follows: a. 450,000, small; 450,000, large (using pounds as the driver) b. 360,000, small; 540,000, large (using revenue as the driver) c. 750,000, small; 150,000, large (using number of orders as the driver) d. 450,000, small; 450,000, large (using customer type as the driver)
Cloud Shoes manufactures recovery sandals and is planning on producing 12.000 units in March and 11,500 in April. Each sandal requires 1.2 yards if material, which costs $3.00 per yard. The companys policy is to have enough material on hand to equal 15% of next months production needs and to maintain a finished goods inventory equal to 20% of the next months production needs. What is the budgeted cost of purchases for March?
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 60,000 cases of the FlavorPak version and 36,000 cases of the Gourmet version. The actual results for the year showed that 56,700 cases of the FlavorPak version and 37,800 cases of the Gourmet version were sold. Total revenues generated by sales of both versions amounted to $1,993,950 with $1,058,400 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…
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 60,300 cases of the FlavorPak version and 36,180 cases of the Gourmet version. The actual results for the year showed that 57,000 cases of the FlavorPak version and 38,000 cases of the Gourmet version were sold. Total revenues generated by sales of both versions amounted to $2,013,950 with $1,078,400 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.
Southside Pizzeria wants to improve its ability to manage the ingredient costs associated with making and selling its pizzas. For the month of June, the company plans to make 1,000 pizzas. It has created a planning budget that includes a cost formula for mozzarella cheese of $6.00 per pizza. At the end of June, Southside actually sold 1,100 pizzas and the actual cost of the cheese that it used during the month was $2,820. Required: 1. What is the mozzarella cheese spending variance for June? 2. Assume that the company establishes a price standard of $0.75 per ounce for mozzarella cheese and a quantity standard of eight ounces of cheese per pizza. Also, assume that Southside actually used 9,400 ounces of cheese during the month to make 1,100 pizzas. a. What is the materials price variance for mozzarella cheese for June? b. What is the materials quantity variance for mozzarella cheese for June? c. What is the materials spending variance for mozzarella cheese for June?
Sara’s Systems manufactures audio systems for cars. Two models are produced: The Standard model has a budgeted price of $235 and a standard variable cost of $115. The Blaster model has a budgeted price of $515 and a standard variable cost of $195. At the beginning of the year, Sara estimated that she would sell 6,140 Blaster models and 24,560 Standard models. The actual results for the year showed that 7,460 Blaster models were sold for total revenues of $3,516,200. A total of 27,000 Standard models were sold for revenues of $7,120,000. Required: a. Compute the activity variance for the year. b. Compute the mix and quantity variances for the year.
C. Bedtime Company produces a variety of pillows for catalog sales. Two popular types are the standard pillow and the neck roll. The standard pillow sells for $4, and the neck roll sells for $3. Projected sales of the two types of pillows for the coming four quarters are as shown in the table. In the factory, the production supervisor has received the projected sales figures and gathered information needed to compile production budgets. He found that 300 standard pillows and 170 neck rolls were in inventory on January 1. Company policy dictates that ending inventory should equal 20 percent of the next quarter’s sales for standard pillows and 10 percent of next quarter’s sales for neck rolls. 1.Compute for the units produced for the second quarter. 2.Compute for the units produced for the fourth quarter.
Orchid Corporation produces pre-packed meal boxes with three pre-made dishes and one soup per meal box. The pre-made dishes and the soup in each meal box are decided and designed by Orchid Corporation and the meal boxes are ordered through Orchid Corporation’s website. The company’s operating budget for March 2021 included these data: Number of meal boxes 15,000 Selling price per box $ 20 Variable cost per box $ 8 Fixed costs for the month $145,000 The actual results for March 2021 were as follows: Number of checkbooks produced and sold 12,000 Average selling price per box $ 21 Variable cost per box $ 7 Fixed costs for the month $150,000 The executive vice president of the company observed that the operating income for March was much lower than anticipated, despite a higher-than-budgeted selling price and a lower-than-budgeted variable cost per unit. As the company’s management…
Barb’s Best Pies is based in Newtown and makes gourmet pies sold online to customers on credit (40% if sakes) and to customers in the factory for cash (60% of sales). Barb’s Best Pies is preparing a sales budget for the October – December quarter. Sales are estimated at 1,100 pies in October, 1,200 pies in November and 1,600 pies in December. The average selling price per pie is $21. Credit customers pay 95% in the month after sale. The remaining credit sales are bad debt. September sales were 1,300 pies. What is the total credit sales in November?
Sky has set up a jam-making business and is calculating the raw material requirements for the year ahead. Her sales estimates and raw materials usage assumptions are as follows: TABLE 1: Jam sales budget in units (jars) Gooseberry 245,000 Rhubarb Sales units (jars) Opening inventory (jars) 60,000 5,500 30,000 TABLE 2: Jam raw material usage assumptions Gooseberry 0.7kg 0.6kg Rhubarb Fruit per jar Sugar per jar 1.1kg 1.0kg Calculate: (i) The production budget (in quantities) using the opening inventory assumptions in Table 1 above and assuming that closing inventory should be 10% of sales units. (ii) The materials budget (in quantities), identifying how much of each type of raw material is required. (iii) The total raw material purchase budget (in value £ and to the nearest whole £) if gooseberries cost £1.60 per kg; and rhubarb cost £2.25 per kg. Sugar costs £0.21 per kg, jars cost £0.15 each, lids cost £0.02 each and labels (one per jar) cost £0.01 each. (iv) The total cost per jar…
Minty Madness Co. manufactures mint-flavoured products. Minty has four main products: Minty Cookies, Minty Ice Cream, Minty Chocolate, and Minty Gum. Maximum demand for these products is 20 units of each per month. Each product requires a different amount of mint. Since Minty only uses a specially flavoured mint in its products, it is limited to 100 kgs of mint each month. Management is reviewing its budget for the month of March, and has provided the following data: Cookies $60 $25 1.5 kg Ice Cream $90 $48 2 kg Chocolate $50 $26 0.75 kg Gum Sales price per unit Variable costs per unit Mint required per unit $40 $18 1.25 kg Required: Analyze this data and determine the best product mix for Minty Madness Co. to maximize its profitability in the month of March. Ensure that you show all your calculations.
Sunrise Poles manufactures hiking poles and is planning on producing 4,000 units in March and 3,700 in April. Each pole requires a half pound of material, which costs $1.20 per pound. The company's policy is to have enough material on hand to equal 10% of the next month's production needs and to maintain a finished goods inventory equal to 25% of the next month's production needs. PLEASE NOTE: Units are rounded to whole numbers with commas as needed (i.e. 1,234). All dollar amounts are rounded to whole dollars and shown with "$" and commas as needed (i.e. $12,345), except for any "per" amounts (units or dollars), which are rounded to two decimal places and shown with "$" and commas as needed (i.e. $1,234.56) Cost per Pound Desired Ending Inventory DM per Unit Units to be Produced Pounds Needed for Production Required DM Pounds Beginning Inventory Total Cost of DM Purchase Total DM Required Using the information aboye, along with the terms above, prepare a direct materials (DM) budget…