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 Gallons 342,000 427,500 285,000 85,500 Flavor Vanilla Chocolate Strawberry Anchovy Total Budgeted Data Selling Variable Price per Costs per Gallon Gallon. $ 1.40 $ 2.10 3.20 2.65 2.30 1.55 2.70 4.20 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. Actual Operating Results Selling Variable Price per Costs per Gallon Gallon $ 1.95 $ 1.30 2.20 3.05 2.85 1.60 4.70 2.90 Sales Volume Variance Gallons. 282,000 397,500 415,000 205,500 b. Sales Mix Variance C. 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: Flavor Vanilla Chocolate Strawberry Anchovy Gallons 342,000 427,500 285,000 85,500 Flavor Vanilla Chocolate Strawberry Anchovy Total Budgeted Data Selling Variable Price per Costs per Gallon Gallon. $ 1.40 $ 2.10 3.20 2.65 2.30 1.55 2.70 4.20 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. Actual Operating Results Selling Variable Price per Costs per Gallon Gallon $ 1.95 $ 1.30 2.20 3.05 2.85 1.60 4.70 2.90 Sales Volume Variance Gallons. 282,000 397,500 415,000 205,500 b. Sales Mix Variance C. Sales Quantity Variance
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
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.
Question
2
Transcribed Image Text: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
Flavor
Vanilla
Gallons
342,000
427,500
285,000
85,500
Chocolate
Strawberry
Anchovy
Total
Budgeted Data
Selling
Price per
Gallon
$ 2.10
3.20
2.65
4.20
a.
Variable
Costs per
Gallon
$ 1.40
2.30
1.55
2.70
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.)
Sales Volume Variance
Actual Operating Results
Selling
Price per
Gallon
$ 1.95
3.05
2.85
4.70
Gallons
282,000
397,500
415,000
205,500
Variable
Costs per
Gallon
$ 1.30
2.20
1.60
2.90
b.
Sales Mix Variance
C.
Sales Quantity Variance
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