Allonby Foods processes frozen meals for sale in grocery and other retail outlets. Two versions are produced: The FlavorPak versionhas a budgeted price of $16 per case and a standard variable cost of $9 per case. The Gourmet version has a budgeted price of $29per case and a standard variable cost of $18 per case. At the beginning of the year, the Marketing Group at Allonby estimated that thecompany would sell 60,000 cases of the FlavorPak version and 36,000 cases of the Gourmet version. The actual results for the yearshowed that 56,700 cases of the FlavorPak version and 37,800 cases of the Gourmet version were sold. Total revenues generated bysales 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 BCompute 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" forunfavorable. If there is no effect, do not select either option.Activity variance

To compute the sales activity variance, we first need to calculate the budgeted sales revenue and…

Answered: Allonby Foods processes frozen meals…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 1PA: Lens Junction sells lenses for $45 each and is estimating sales of 15,000 units in January and...

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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 60,300 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?
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…
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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.
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.
Chadwick Shoe Co. produces and sells an e xcellent-quality walking shoe. After production, the shoes are distributed to 20 warehouses around the country. Each warehouse services approximately 100 stores in its region. Chadwick uses an EOQ model to determine the number of pairs of shoes to order for each warehouse from the factory. Annual demand for Warehouse OR2 is approximately 120,000 pairs of shoes. The ordering cost is $250 per order. The annual carrying cost of a pair of shoes is $2.40 per pair. Q. Although OR2’s average weekly demand is 2,500 pairs of shoes (120,000 , 12 months , 4 weeks), demand each week may vary with the following probability distribution: Total demand for 1 week 2,000 pairs 2,250 pairs 2,500 pairs 2,750 pairs 3,000 pairs Probability (sums to 1.00) 0.04 0.20 0.52 0.20 0.04 If a store wants shoes and OR2 has none in…
Chadwick Shoe Co. produces and sells an e xcellent-quality walking shoe. After production, the shoes are distributed to 20 warehouses around the country. Each warehouse services approximately 100 stores in its region. Chadwick uses an EOQ model to determine the number of pairs of shoes to order for each warehouse from the factory. Annual demand for Warehouse OR2 is approximately 120,000 pairs of shoes. The ordering cost is $250 per order. The annual carrying cost of a pair of shoes is $2.40 per pair. Q. Assume each month consists of approximately 4 weeks. If it takes 1 week to receive an order, at what point should warehouse OR2 reorder shoes?
Chadwick Shoe Co. produces and sells an e xcellent-quality walking shoe. After production, the shoes are distributed to 20 warehouses around the country. Each warehouse services approximately 100 stores in its region. Chadwick uses an EOQ model to determine the number of pairs of shoes to order for each warehouse from the factory. Annual demand for Warehouse OR2 is approximately 120,000 pairs of shoes. The ordering cost is $250 per order. The annual carrying cost of a pair of shoes is $2.40 per pair. Q. Use the EOQ model to determine the optimal number of pairs of shoes per order
A. Timeless Products produces coat racks. The projected sales for the first quarter of the coming year and the beginning and ending inventory data are as follows: Sales 100,000 units; Unit price $15; Beginning inventory 8,000 units; Targeted ending inventory 12,000 units. The coat racks are molded and then painted. Each rack requires four pounds of metal, which cost $2.50 per pound. The beginning inventory of materials is 4,000 pounds. Young Products wants to have 6,000 pounds of metal in inventory at the end of the quarter. Each rack produced requires 30 minutes of direct labor time, which is billed at $9 per hour. 1. Compute for the budgeted materials purchases cost. 2.Compute for the budgeted direct labor cost

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