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: Flavor Vanilla Chocolate Strawberry Anchovy Required: Budgeted Data Actual Operating Results Gallons Selling Price per Gallon 324,000 $ 1.95 Variable Costs per Gallon $ 1.25 Selling Price per Variable Costs per Gallons Gallon Gallon 264,000 $ 1.80 $ 1.15 405,000 2.90 2.00 375,000 2.75 1.90 270,000 2.50 1.40 400,000 2.70 1.45 81,000 3.90 2.40 201,000 4.40 2.60 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.) Answer is complete but not entirely correct. b. Flavor Sales Volume Variance Sales Mix Variance Sales Quantity Variance Vanilla $ Chocolate 117,000 87,000 Unfavorable Unfavorable $ 210,600 Unfavorable $ 93,600 Favorable Strawberry Anchovy Total $ 325,000 Favorable 468,000 Favorable 589,000 Favorable 261,000 225,000 Unfavorable 174,000 Favorable Favorable 100,000 Favorable 421,200 Favorable 46,800 Favorable $ 174,600 Favorable S 414,400 Favorable

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: Flavor Vanilla Chocolate Strawberry Anchovy Required: Budgeted Data Actual Operating Results Gallons Selling Price per Gallon 324,000 $ 1.95 Variable Costs per Gallon $ 1.25 Selling Price per Variable Costs per Gallons Gallon Gallon 264,000 $ 1.80 $ 1.15 405,000 2.90 2.00 375,000 2.75 1.90 270,000 2.50 1.40 400,000 2.70 1.45 81,000 3.90 2.40 201,000 4.40 2.60 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.) Answer is complete but not entirely correct. b. Flavor Sales Volume Variance Sales Mix Variance Sales Quantity Variance Vanilla $ Chocolate 117,000 87,000 Unfavorable Unfavorable $ 210,600 Unfavorable $ 93,600 Favorable Strawberry Anchovy Total $ 325,000 Favorable 468,000 Favorable 589,000 Favorable 261,000 225,000 Unfavorable 174,000 Favorable Favorable 100,000 Favorable 421,200 Favorable 46,800 Favorable $ 174,600 Favorable S 414,400 Favorable

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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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: Flavor Gallons Budgeted Data Selling Price per Gallon Actual Operating Results Vanilla 324,000 $ 1.95 Variable Costs per Gallon $ 1.25 Selling Price per Variable Costs per Gallons Gallon Gallon 264,000 $ 1.80 $ 1.15 Chocolate 405,000 2.90 2.00 375,000 2.75 1.90 Strawberry Anchovy 270,000 2.50 1.40 400,000 2.70 1.45 81,000 3.90 2.40 201,000 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.) a. b. C. Flavor Sales Volume Variance Sales Mix Variance Sales Quantity Variance Vanilla Chocolate Strawberry Unfavorable Unfavorable Favorable Unfavorable Favorable Unfavorable Favorable Favorable Favorable Anchovy Favorable Favorable Favorable Total Favorable Favorable Favorable
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