please help and provide answer with explanation calculation intermediate calculation use commas and dollars sign with steps formulas Earle Soup Company makes three varieties of soups: Bean, Tomato, and Vegetable. Sales volume for the annual budget is determinedby estimating the total market volume for soups and then applying the company's prior year market share, adjusted for plannedchanges due to company programs for the coming year. Volume is apportioned among the three varieties of soup based on the prioryear's product mix, again adjusted for planned changes for the coming year.The following are the company budget and the results of operations for the most recent quarter.Budget (all units and costs in thousands)Sales-unitsSales-dollarsVariable costsContribution marginManufacturing fixed costProduct marginMarketing and administrative costs (all fixed)Operating profitActual (all units and costs in thousands)Bean30 cases$ 1,200840$ 360240$ 120BeanTomato30 cases$ 2,4001,920$ 480240$240TomatoVegetable60 cases$ 3,6002,760$ 848360$ 480VegetableTotal120 cases$ 7,2005,520$1,680840$ 840300$ 540Total Sales-unitsSales-dollarsVariable costsContribution marginManufacturing fixed costProduct marginMarketing and administrative costs (all fixed)Operating profit24$972672$ 300252$48casesSales mix varianceQuantity variance30 cases$ 2,4001,932$468264$ 20463 cases$ 3,6002,784$816378$438Industry volume for the quarter was estimated at 1.2 million cases for budgeting purposes. Actual industry volume for the quarter was1,140,000 cases.Required:Break down the total activity variance into sales mix and quantity parts.Note: Do not round intermediate calculations. Enter your answers in thousands. Indicate the effect of each variance by selecting"F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.117 cases$ 6,9725,388$ 1,584894$ 690330$360

Activity variance shows the difference between the actual and the budgeted plans. It is to be…

Earle Soup Company makes three varieties of soups: Bean, Tomato, and Vegetable. Sales volume for the annual budget is determined by estimating the total market volume for soups and then applying the company's prior year market share, adjusted for planned changes due to company programs for the coming year. Volume is apportioned among the three varieties of soup based on the prior year's product mix, again adjusted for planned changes for the coming year. The following are the company budget and the results of operations for the most recent quarter. Budget (all units and costs in thousands) Sales-units Sales-dollars Variable costs Contribution margin Bean 30 $ 1,200 840 < 360 cases Tomato 30 cases $ 2,400 1,920 $ 480 Vegetable 60 $ 3,600 2,760 $848 cases Total 120 cases $ 7,200 5,520 $ 1.680

Earle Soup Company makes three varieties of soups: Bean, Tomato, and Vegetable. Sales volume for the annual budget is determined by estimating the total market volume for soups and then applying the company's prior year market share, adjusted for planned changes due to company programs for the coming year. Volume is apportioned among the three varieties of soup based on the prior year's product mix, again adjusted for planned changes for the coming year. The following are the company budget and the results of operations for the most recent quarter. Budget (all units and costs in thousands) Sales-units Sales-dollars Variable costs Contribution margin Bean 30 $ 1,200 840 < 360 cases Tomato 30 cases $ 2,400 1,920 $ 480 Vegetable 60 $ 3,600 2,760 $848 cases Total 120 cases $ 7,200 5,520 $ 1.680

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter6: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 1CMA: Taylor Corporation is analyzing the cost behavior of three cost items, A, B, and C, to budget for...

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Taylor Corporation is analyzing the cost behavior of three cost items, A, B, and C, to budget for the upcoming year. Past trends have indicated the following dollars were spent at three different levels of output: In establishing a budget for 14,000 units, Taylor should treat A, B, and C costs as: a. semivariable, fixed, and variable, respectively. b. variable, fixed, and variable, respectively. c. semivariable, semivariable, and semivariable, respectively. d. variable, semivariable, and semivariable, respectively.
Earle Soup Company makes three varieties of soups: Bean, Tomato, and Vegetable. Sales volume for the annual budget is determined by estimating the total market volume for soups and then applying the company's prior year market share, adjusted for planned changes due to company programs for the coming year. Volume is apportioned among the three varieties of soup based on the prior year's product mix, again adjusted for planned changes for the coming year. The following are the company budget and the results of operations for the most recent quarter. Budget (all units and costs in thousands) Sales-units Sales-dollars Variable costs Contribution margin Manufacturing fixed cost Product margin Marketing and administrative costs (all fixed) Operating profit Actual fall units and costs in thousands) Sales-units Sales-dollars Variable costs Contribution margin: Manufacturing fixed cost Product margin Marketing and administrative costs (all fixed) Operating profit $ 1,200 840 $360 240 $ 120…
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