Chow-4-Hounds (C4H) makes pet food for sale in supermarkets. C4H produces two general types: Branded and Generic. The two differ primarily in the ingredients used. At budget, Branded sells for $32 per case and has a variable cost to produce of $25 per case. Generic sells for a budgeted $29 per case and has a budgeted variable cost to produce of $24 per case. C4H expects to sell 20 percent Branded and 80 percent Generic regardless of the sales volume. C4H budgeted total sales of 220,000 cases for March. Actual case volume sold in March was 250,000 cases, of which 70,000 were Branded. Total actual revenues in March were $2,075,000, of which $790,000 were from sales of Branded cases. Required: a. Compute the activity variance for C4H for March. b. Compute the mix and quantity variances for March.

Chow-4-Hounds (C4H) makes pet food for sale in supermarkets. C4H produces two general types: Branded and Generic. The two differ primarily in the ingredients used. At budget, Branded sells for $32 per case and has a variable cost to produce of $25 per case. Generic sells for a budgeted $29 per case and has a budgeted variable cost to produce of $24 per case. C4H expects to sell 20 percent Branded and 80 percent Generic regardless of the sales volume. C4H budgeted total sales of 220,000 cases for March. Actual case volume sold in March was 250,000 cases, of which 70,000 were Branded. Total actual revenues in March were $2,075,000, of which $790,000 were from sales of Branded cases. Required: a. Compute the activity variance for C4H for March. b. Compute the mix and quantity variances for March.

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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