As the bakery manager at the local grocery store, Donald monitored the mix of products most popular with consumers. Just two years earlier, this store sold eight loaves of bread for each package of buns sold. Today, the ratio is closer to six to one, bread to buns. Donald isn't sure why tastes or buying behavior have changed, but it's significant, so his purchasing behavior has changed accordingly. For the year just ended, the bakery department budgeted for sales of 10,200 loaves of bread and 1,800 packages of buns. Actual sales were 9,900 loaves of bread and 1,100 packages of buns. Budgeted selling price and variable cost per unit for each were as follows. Bread Buns Budgeted selling price $2.00 $2.80 Budgeted variable cost 0.60 1.00 Budgeted contribution margin $1.40 $1.80 This year, the bread actually sold for $2.07 per loaf, while the package of buns sold for $2.92. (a1) (b1) Determine the sales mix and sales quantity variances for the bakery this period, specifying the amount and sign for each. (Round answers to 2 decimal places, e.g. 15.25.) Sales mix variance Sales quantity variance $ +A $ +A

As the bakery manager at the local grocery store, Donald monitored the mix of products most popular with consumers. Just two years earlier, this store sold eight loaves of bread for each package of buns sold. Today, the ratio is closer to six to one, bread to buns. Donald isn't sure why tastes or buying behavior have changed, but it's significant, so his purchasing behavior has changed accordingly. For the year just ended, the bakery department budgeted for sales of 10,200 loaves of bread and 1,800 packages of buns. Actual sales were 9,900 loaves of bread and 1,100 packages of buns. Budgeted selling price and variable cost per unit for each were as follows. Bread Buns Budgeted selling price $2.00 $2.80 Budgeted variable cost 0.60 1.00 Budgeted contribution margin $1.40 $1.80 This year, the bread actually sold for $2.07 per loaf, while the package of buns sold for $2.92. (a1) (b1) Determine the sales mix and sales quantity variances for the bakery this period, specifying the amount and sign for each. (Round answers to 2 decimal places, e.g. 15.25.) Sales mix variance Sales quantity variance $ +A $ +A

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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