As the bakery manager at the local grocery store, William 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. William 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 9,460 loaves of bread and 1,540 packages of buns. Actual sales were 8,900 loaves of bread and 1,100 packages of buns. Budgeted selling price and variable cost per unit for each were as follows. Bread Budgeted selling price Budgeted variable cost 0.60 Budgeted contribution margin $1.40 (a1) $2.00 Your answer is partially correct. Sales price variance $ Buns $2.80 This year, the bread actually sold for $2.07 per loaf, while the package of buns sold for $2.91. 1.00 $1.80 Determine the bakery's sales price variance this year, noting the amount and sign. (Round answer to 2 decimal places, e.g. 15.25.) Favorable

As the bakery manager at the local grocery store, William 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. William 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 9,460 loaves of bread and 1,540 packages of buns. Actual sales were 8,900 loaves of bread and 1,100 packages of buns. Budgeted selling price and variable cost per unit for each were as follows. Bread Budgeted selling price Budgeted variable cost 0.60 Budgeted contribution margin $1.40 (a1) $2.00 Your answer is partially correct. Sales price variance $ Buns $2.80 This year, the bread actually sold for $2.07 per loaf, while the package of buns sold for $2.91. 1.00 $1.80 Determine the bakery's sales price variance this year, noting the amount and sign. (Round answer to 2 decimal places, e.g. 15.25.) Favorable

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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Concept explainers

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.

Question

As the bakery manager at the local grocery store, William 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. William
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 9,460 loaves of bread and 1,540 packages of buns. Actual sales
were 8,900 loaves of bread and 1,100 packages of buns. Budgeted selling price and variable cost per unit for each were as follows.
Bread
Budgeted selling price
Budgeted variable cost
0.60
Budgeted contribution margin $1.40
(a1)
$2.00
Your answer is partially correct.
Sales price variance $
Buns
$2.80
This year, the bread actually sold for $2.07 per loaf, while the package of buns sold for $2.91.
1.00
$1.80
Determine the bakery's sales price variance this year, noting the amount and sign. (Round answer to 2 decimal places, e.g. 15.25.)
Favorable

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