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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 $15 per case and has a variable cost to produce of 58 per case. Generic sells for a budgeted $12 per case and has a budgeted variable cost to produce of 57 per case. C4H expects to sell 20 percent Branded and 80 percent Generic regardless of the sales volume. C4H budgeted total sales of 203,000 cases for March. Actual case volume sold in March was 216,000 cases, of which 61,500 were Branded. Total actual revenues in March were $2,058,000, of which $781,500 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 $15 per case and has a variable cost to produce of 58 per case. Generic sells for a budgeted $12 per case and has a budgeted variable cost to produce of 57 per case. C4H expects to sell 20 percent Branded and 80 percent Generic regardless of the sales volume. C4H budgeted total sales of 203,000 cases for March. Actual case volume sold in March was 216,000 cases, of which 61,500 were Branded. Total actual revenues in March were $2,058,000, of which $781,500 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
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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 $15 per case and has a variable cost to produce of 58 per case. Generic sells for a budgeted $12 per case and has a budgeted variable cost to produce of 57 per case. C4H expects to sell 20 percent Branded and 80 percent Generic regardless of the sales volume. C4H budgeted total sales of 203,000 cases for March. Actual case volume sold in March was 216,000 cases, of which 61,500 were Branded. Total actual revenues in March were $2,058,000, of which $781,500 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.
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 $15 per case and has a variable cost to produce of 58 per case. Generic sells for a budgeted $12 per case and has a budgeted variable cost to produce of 57 per case. C4H expects to sell 20 percent Branded and 80 percent Generic regardless of the sales volume. C4H budgeted total sales of 203,000 cases for March. Actual case volume sold in March was 216,000 cases, of which 61,500 were Branded. Total actual revenues in March were $2,058,000, of which $781,500 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.
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