Rey Chow-4-Hounds (C4H) makes pet food for sale in supermarkets. C4H produces two general types: Branded and Generic. The two differ primarily in theingredients 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 abudgeted 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 budgetedtotal 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.

Variance analysis is a technique used in financial and managerial accounting to examine and analyze…

Answered: Chow-4-Hounds (C4H) makes pet food for…

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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Grammy Girl products has two divisions Bones and Biscuits both of which usually have independence in sourcing and pricing decisions. There is an unlimited supply of raw bones. Biscuits manufactures amongst other items a specialty product called BisBne formula requires 70% Bone meal and 30 % cereal per pound plus a dollop of mat flavoring. Bison is usually sold in 20 pound cases and processed bones in 5 pound packs cost and sales pricing dat appears below. Sales price per case $20; Raw bones per pound $1.50; Processing per pound $.80; Packaging $.75; Overhead per case (pack) 40% fixed $7.00 In lieu of its normal processing, Bones sometimes grinds…
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Maxim manufactures a hamster food product called Green Health. Maxim currently has 18,500 bags of Green Health on hand. The variable production costs per bag are $3.50 and total fixed costs are $27,000. The hamster food can be sold as it is for $10.00 per bag or be processed further into Premium Green and Green Deluxe at an additional cost. The additional processing will yield 18,500 bags of Premium Green and 4,700 bags of Green Deluxe, which can be sold for $9 and $7 per bag, respectively. The incremental revenue of processing Green Health further into Premium Green and Green Deluxe would be: Multiple Choice O $199,400. $14,400. $194,400. $5,000. $9,400.
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SE Spring Corp. has two divisions, Daffodil and Tulip. Daffodil produces a gadget that Tulip could use in its production. Tulip currently purchases 195,000 gadgets for $14.40 on the open market. Daffodil's variable costs are $7.90 per widget while the full cost is $12.20. Daffodil sells gadgets for $15 each. If Daffodil is operating at capacity, what would be the maximum transfer price Tulip would pay internally? Multiple Choice $7.90 $12.20 $14.40 $14.90
Maxim manufactures a hamster food product called Green Health. Maxim currently has 23,000 bags of Green Health on hand. The variable production costs per bag are $3.30 and total fixed costs are $25,000. The hamster food can be sold as it is for $9.00 per bag or be processed further into Premium Green and Green Deluxe at an additional cost. The additional processing will yield 23,000 bags of Premium Green and 4,500 bags of Green Deluxe, which can be sold for $8 and $7 per bag, respectively. Assuming Maxim further processes Green Health further into Premium Green and Green Deluxe, revenue from the two products would be: Multiple Choice $215,500 $211,500. $8,500. W
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Assume that Bene Petit sells only family-sized meals and that the average price is $5.00 per serving. Variable manufacturing costs are $1.75 per serving for customer meals and $0.75 per serving for donated meals. Variable delivery expenses are $2.00 per customer delivery (with an average order size of four meals or 16 servings in each delivery). Variable delivery expenses for donated meals are $200 per delivery, with an average of 1,000 donated meals or 4,000 servings in each delivery. Other variable selling expenses are $0.30 per customer meal sold. Total fixed costs are $144,000. How much total sales revenue would be needed to earn a profit of $126,000 per year? Multiple Choice O $200,000 O $400,000 O $600,000 O $800,000
Assume that Bene Petit sells only family-sized meals and that the average price is $5.00 per serving. Variable manufacturing costs are $1.75 per serving for customer meals and $0.75 per serving for donated meals. Variable delivery expenses are $2.00 per customer delivery (with an average order size of four meals or 16 servings in each delivery). Variable delivery expenses for donated meals are $200 per delivery, with an average of 1,000 donated meals or 4,000 servings in each delivery. Other variable selling expenses are $0.30 per customer meal sold. Total fixed costs are $144,000. If Taylor expects to sell 25,000 customer meals next year, what is its margin of safety in total sales dollars?

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