Homework Help is Here – Start Your Trial Now!
Business
Accounting
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
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
icon
Concept explainers
Question

Sh12

Please help me. 

Solution thankyou. 

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. Complete this question by entering your answers in the tabs below. Required A Required B X Answer is not complete. Compute the mix and quantity variances for March. (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.) Mix variance Quantity variance $ 140,000 X U X < Required A Required B >
Transcribed Image Text: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. Complete this question by entering your answers in the tabs below. Required A Required B X Answer is not complete. Compute the mix and quantity variances for March. (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.) Mix variance Quantity variance $ 140,000 X U X < Required A Required B >
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Budgeting
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS