Gourmet Aroma Coffee House has an exclusive contract with Columbia exporters. Two brands of gourmet coffee are imported, Morning Thunder (MT)and Evening Tender (ET). The following data are provided for the current fiscal year:2@WSPrice per poundVariable cost per poundSales (in pounds)The total market was estimated to be 60,000 pounds at the time of budget. The actual total market for the year is 59,200 pounds.What is the firm's market size variance? (Round your Intermediate percentage answers to nearest whole percent.)Multiple ChoiceX#3$1,280 unfavorable.$2.080 unfavorable.$3,320 unfavorable.20EDC$4200RF4F%5BudgetedMT$ 40203,000VTET$ 80483,000G< Prev^6Operating ResultsMTET$75$ 5023532,9604,440***MacBook AirB6 of 6Y&7HYUNext >* 008-F1N M19AKOV10PVG{[

Variance arises when the actual costs is different from the standard costs. The results are…

Answered: Gourmet Aroma Coffee House has an…

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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Caldwell Supply, a wholesaler, has determined that its operations have three primary activities: purchasing, warehousing, and distributing. The firm reports the following operating data for the year just completed: Activity Purchasing Warehousing Distributing Cost Driver Number of purchase orders Number of moves Number of shipments. Quantity of Cost Driver 1,040 8,400 540 Maximum cost Cost per Unit of Cost Driver $154 per order 34 per move 84 per shipment Caldwell buys 100,400 units at an average unit cost of $14 and sells them at an average unit price of $24. The firm also has fixed operating costs of $250,400 for the year. Caldwell's customers are demanding a 14% discount for the coming year. The company expects to sell the same amount if the demand for price reduction can be met. Caldwell's suppliers, however, are willing to give only a 8% discount. Required: Caldwell has estimated that it can reduce the number of purchase orders to 720 and can decrease the cost of each shipment by…
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