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 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 60,000 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 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 60,300 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.
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…
Java Source, Inc., (JSI) buys coffee beans from around the world and roasts, blends, and packages them for resale. Some of JSI’s coffees are very popular and sell in large volumes, while a few of the newer blends sell in very low volumes. JSI prices its coffees at manufacturing cost plus a markup of 25%. For the coming year, JSI’s budget includes estimated manufacturing overhead cost of $2,200,000. JSI assigns manufacturing overhead to products on the basis of direct labor-hours. The expected direct labor cost totals $600,000, which represents 50,000 hours of direct labor time. The expected costs for direct materials and direct labor for one-pound bags of two of the company’s coffee products appear below. Kenya Dark Viet Select Direct materials 4.5 2.90 Direct labor (0.02 hours per bag) 0.34 0.34 JSI’s controller believes that the company’s traditional costing system may be providing misleading cost information. To determine whether or not this is…
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.
Kate’s Kale Chips produces a healthy snack made primarily of kale. Each bag of the product sells for $5. The company computes the manufacturing overhead rate on a quarterly basis based upon the planned number of units to be produced that quarter. The following data are from the projections of Kate’s Kale Chips for the upcoming quarter: Projections Sales 26,000 bags Production 28,000 bags Variable manufacturing cost per bag $ 3.20 Sales and distribution costs per bag $ 0.25 Total fixed manufacturing overhead $ 42,000 Fixed administrative overhead $ 24,000 Required: 1. Compute the projected product cost per bag produced under full costing. 2. Compute the projected product cost per bag under variable costing. (Round your answers to 2 decimal places.) Please dont provide answer in images thank you
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
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…