Exercise 17-31 (Algo) Sales Mix and Quantity Variances (LO 17-4) Allonby Foods processes frozen meals for sale in grocery and other retail outlets. Two versions are produced: The FlavorPak version has a budgeted price of $16 per case and a standard variable cost of $9 per case. The Gourmet version has a budgeted price of $29 per case and a standard variable cost of $18 per case. At the beginning of the year, the Marketing Group at Allonby estimated that the company would sell 60,060 cases of the FlavorPak version and 36,036 cases of the Gourmet version. The actual results for the year showed that 56,760 cases of the FlavorPak version and 37,840 cases of the Gourmet version were sold. Total revenues generated by sales of both versions amounted to $1,997,950 with $1,062,400 coming from the Gourmet version sales. Required: a. Compute the sales activity variance for the year. b. Compute the mix and quantity variances for the year. Complete this question by entering your answers in the tabs below. Required Compute the mix and quantity variances for the year. Note: 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. Required A Mix variance Quantity variance < Required A AUGU
Exercise 17-31 (Algo) Sales Mix and Quantity Variances (LO 17-4) Allonby Foods processes frozen meals for sale in grocery and other retail outlets. Two versions are produced: The FlavorPak version has a budgeted price of $16 per case and a standard variable cost of $9 per case. The Gourmet version has a budgeted price of $29 per case and a standard variable cost of $18 per case. At the beginning of the year, the Marketing Group at Allonby estimated that the company would sell 60,060 cases of the FlavorPak version and 36,036 cases of the Gourmet version. The actual results for the year showed that 56,760 cases of the FlavorPak version and 37,840 cases of the Gourmet version were sold. Total revenues generated by sales of both versions amounted to $1,997,950 with $1,062,400 coming from the Gourmet version sales. Required: a. Compute the sales activity variance for the year. b. Compute the mix and quantity variances for the year. Complete this question by entering your answers in the tabs below. Required Compute the mix and quantity variances for the year. Note: 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. Required A Mix variance Quantity variance < Required A AUGU
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Exercise 17-31 (Algo) Sales Mix and Quantity Variances (LO 17-4)
Allonby Foods processes frozen meals for sale in grocery and other retail outlets. Two versions are produced: The FlavorPak version
has a budgeted price of $16 per case and a standard variable cost of $9 per case. The Gourmet version has a budgeted price of $29
per case and a standard variable cost of $18 per case. At the beginning of the year, the Marketing Group at Allonby estimated that the
company would sell 60,060 cases of the FlavorPak version and 36,036 cases of the Gourmet version. The actual results for the year
showed that 56,760 cases of the FlavorPak version and 37,840 cases of the Gourmet version were sold. Total revenues generated by
sales of both versions amounted to $1,997,950 with $1,062,400 coming from the Gourmet version sales.
Required:
a. Compute the sales activity variance for the year.
b. Compute the mix and quantity variances for the year.
Complete this question by entering your answers in the tabs below.
Required B
Required A
Compute the mix and quantity variances for the year.
Note: 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..
Mox variance
Quantity variance
< Required A
RUGUAY
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