intners produces and sells wine. The following data concern the three varietals of white wine the company currently offers. Sales data for November are given as follows: Sauvignon Blanc Chardonnay Riesling Total Budgeted selling price $ 21.00 $ 25.00 $ 15.00 Budgeted variable cost $ 9.00 $ 11.00 $ 6.00 Budgeted selling
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Wilde Vintners produces and sells wine. The following data concern the three varietals of white wine the company currently offers. Sales data for November are given as follows:
| Sauvignon Blanc | Chardonnay | Riesling | Total | |
|---|---|---|---|---|
| Budgeted selling price | $ 21.00 | $ 25.00 | $ 15.00 | |
| Budgeted variable cost | $ 9.00 | $ 11.00 | $ 6.00 | |
| Budgeted selling quantity | 30,000 | 45,000 | 15,000 | 90,000 |
| Actual selling price | $ 21.50 | $ 23.90 | $ 16.40 | |
| Actual variable cost | $ 8.15 | $ 12.50 | $ 5.60 | |
| Actual selling quantity | 32,000 | 41,500 | 14,200 | 87,700 |
Required:
a. Compute the sales price variance for all three wines.
b. Compute the sales activity variance for Wilde Vintners for November.
c. Compute the mix and quantity variances for Wilde Vintners for November.
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