Margot's Ice Cream operates several stores in a major metropolitan city and its suburbs. Its budget and operating data for the currentyear follow:Actual Operating ResultsBudgeted DataFlavorGallons.SellingPrice perGallonVariableCosts perGallonSellingPrice perVariableCosts perGallonsGallonGallonVanillaChocolateStrawberryAnchovy324,000 $ 1.95$ 1.25264,000$ 1.80$ 1.15405,0002.902.00375,0002.751.90270,0002.501.48400,0002.701.4581,0003.902.40201,0004.402.60Required:1. Compute these variances for the individual flavors and total quantity sold. (Use the Contribution Margin in your calculations and donot round Intermediate calculations.)FlavorVanillaChocolateStrawberryAnchovyTotalSales Volume VarianceSales Mix VarianceSales Quantity Variance

Variance:Variance is a very important concept in cost accounting that lets the company analyze the…

Margot's Ice Cream operates several stores in a major metropolitan city and its suburbs. Its budget and operating data for the current year follow: Budgeted Data Selling Actual Operating Results Variable Price per Costs per Selling Variable Price per Costs per Flavor Gallons Gallon Gallon Gallons Gallon Gallon Vanilla 324,000 $1.95 $1.25 264,000 $ 1.80 $1.15 Chocolate Strawberry Anchovy 405,000 2.90 2.00 375,000 2.75 1.90 270,000 2.50 1.40 81,000 3.90 2.40 400,000 201,000 2.70 1.45 4.40 2.60 Required: 1. Compute these variances for the individual flavors and total quantity sold. (Use the Contribution Margin in your calculations and do not round Intermediate calculations.) Flavor Vanilla Sales Volume Variance Sales Mix Variance Sales Quantity Variance

Margot's Ice Cream operates several stores in a major metropolitan city and its suburbs. Its budget and operating data for the current year follow: Budgeted Data Selling Actual Operating Results Variable Price per Costs per Selling Variable Price per Costs per Flavor Gallons Gallon Gallon Gallons Gallon Gallon Vanilla 324,000 $1.95 $1.25 264,000 $ 1.80 $1.15 Chocolate Strawberry Anchovy 405,000 2.90 2.00 375,000 2.75 1.90 270,000 2.50 1.40 81,000 3.90 2.40 400,000 201,000 2.70 1.45 4.40 2.60 Required: 1. Compute these variances for the individual flavors and total quantity sold. (Use the Contribution Margin in your calculations and do not round Intermediate calculations.) Flavor Vanilla Sales Volume Variance Sales Mix Variance Sales Quantity Variance

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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Stone Canyon Muffins sells its muffins to restaurants and coffee houses for an average selling price of $27 per case. The following information relates to the budget for Stone Canyon Muffins for this year (all figures are annual totals unless otherwise noted): Budget information: Budgeted sales in cases. . . . . . 9,300 cases Packaging cost per case. . . . . . $4 Shipping expense per case. . . . $2 Sales commission expense. . . . 1% of sales price Salaries expense. . . . . . . . . . . . $7,000 Office rent. . . . . . . . . . . . . . . . . $3,800 Depreciation. . . . . . . . . . . . . . . $2,600 Insurance expense. . . . . . . . . . $2,500 Office supplies expense. . . . . . $600 Actual expenses: Packaging cost. . . . . . . . . . . . . . $39,300 Shipping expense. . . . . . . . . . . . $21,800 Sales commission expense. . . . . $2,641 Salaries expense. . . . . . . . . . . . . $8,500 Office rent.…
Red Canyon T-shirt Company operates a chain of T-shirt shops in the southwestern United States. The sales manager has provided a sales forecast for the coming year, along with the following information: Quarter 1 Quarter 2 Quarter 3 Quarter 4 Budgeted unit sales 34,000 54,000 27,000 54,000 Each T-shirt is expected to sell for $18. The purchasing manager buys the T-shirts for $7 each. The company needs to have enough T-shirts on hand at the end of each quarter to fill 28 percent of the next quarter’s sales demand. Selling and administrative expenses are budgeted at $68,000 per quarter plus 14 percent of total sales revenue. Required:. Determine budgeted cost of merchandise purchased for quarters 1, 2, and 3.. Determine budgeted cost of good sold for quarters 1, 2, and 3.. Determine selling and administrative expenses for quarters 1, 2, and 3.. Complete the budgeted income statement for quarters 1, 2, and 3.
Gold Star Rice, Limited, of Thailand exports Thai rice throughout Asia. The company grows three varieties of rice-White, Fragrant, and Loonzain. Budgeted sales by product and in total for the coming month are shown below: Percentage of total sales Sales Variable expenses Contribution margin Fixed expenses Net operating income White 48% $ 374,400 112,320 $ 262,080 Fragrant 20% 100% $ 156,000 30% 124,800 70% $ 31,200 Product 100% 80% 20% Loonzain 32% $ 249,600 137, 280 $ 112,320 100% 55% 45% Total 100% $ 780,000 374,400 405, 600 228,800 $ 176,800 Dollar sales to break-even = Fixed expenses ÷ CM ratio = $228,800 ÷ 0.52 = $440,000 As shown by these data, net operating income is budgeted at $176,800 for the month and the estimated break-even sales is $440,000. Assume actual sales for the month total $780,000 as planned; however, actual sales by product are White, $249,600; Fragrant, $312,000; and Loonzain, $218,400. Required: 1. Prepare a contribution format income statement for the month…
Red Canyon T-shirt Company operates a chain of T-shirt shops in the southwestern United States. The sales manager has provided a sales forecast for the coming year, along with the following information: ● Quarter 1 Quarter 2 Quarter 3 Quarter 4 38,000 58,000 29,000 58,000 Budgeted unit sales Each T-shirt is expected to sell for $13. The purchasing manager buys the T-shirts for $5 each. The company needs to have enough T-shirts on hand at the end of each quarter to fill 23 percent of the next quarter's sales demand. Selling and administrative expenses are budgeted at $76,000 per quarter plus 18 percent of total sales revenue. Required: 1. Determine budgeted sales revenue for each quarter. 2. Determine budgeted cost of merchandise purchased for each quarter. 3. Determine budgeted cost of good sold for each quarter. 4. Determine selling and administrative expense for each quarter. 5. Complete the budgeted income statement for each quarter.
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Margot's Ice Cream operates several stores in a major metropolitan city and its suburbs. Its budget and operating data for the current year follow: Budgeted Data Selling Price per Costs per Gallon Actual Operating Results Selling Variable Price per Costs per Gallon $ 0.65 Variable Flavor Gallons 264,000 330,000 220,000 66,000 Gallon Gallons Gallon Vanilla Chocolate Strawberry Anchovy $ 1.45 $ 0.75 204,000 300,000 350,000 186,000 $ 1.30 1.75 2.20 1.90 2.00 1.00 0.90 0.90 0.95 2.90 1.40 3.40 1.60 Required: 1. Compute these variances for the individual flavors and total quantity sold. (Use the Contribution Margin in your calculations and do not round intermediate calculations.) b. Flavor Sales Volume Variance Sales Mix Variance Sales Quantity Variance. Vanilla Chocolate Strawberry Anchovy Total
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Divine Muffins sells its muffins to restaurants and coffee houses for an average selling price of $31 per case. The following information relates to the budget for Divine Muffins for this year (all figures are annual totals unless otherwise noted): Budget information: Budgeted sales in cases. . . . . . 9,300 cases Packaging cost per case. . . . . . $5 Shipping expense per case. . . . $1 Sales commission expense. . . . 3% of sales price Salaries expense. . . . . . . . . . . . $6,800 Office rent. . . . . . . . . . . . . . . . . $3,100 Depreciation. . . . . . . . . . . . . . . $2,900 Insurance expense. . . . . . . . . . $2,300 Office supplies expense. . . . . . $1,300 Actual expenses: Packaging cost. . . . . . . . . . . . . . $50,600 Shipping expense. . . . . . . . . . . . $10,900 Sales commission expense. . . . . $9,423 Salaries expense. . . . . . . . . . . . . $8,400 Office rent. . . .…