Margot's Ice Cream operates several stores in a major metropolitan city and its suburbs. Its budget and operating data for the currentyear follow:FlavorBudgeted DataSellingPrice perGallonActual Operating ResultsGallonsVariableCosts perGallonSellingPrice perVariableCosts perGallonsGallonGallonVanilla246,000$ 1.30$ 0.60186,000$ 1.15$ 0.50Chocolate307,5001.600.70277,5001.450.60StrawberryAnchovy205,0001.850.75335,0002.050.8061,5002.601.10181,5003.101.30Required:1. Compute these variances for the individual flavors and total quantity sold. (Use the Contribution Margin in your calculations and donot round intermediate calculations.)FlavorVanillaChocolateStrawberryAnchovyTotala.b.Sales Volume VarianceSales Mix VarianceSales Quantity Variance

Sales volume variances occur due to the difference between the actual quantity of units sold and 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 Actual Operating Results Flavor Gallons Selling Price per Gallon Variable Costs per Gallon Selling Price per Variable Costs per Gallons Gallon Gallon Vanilla 246,000 $ 1.30 $ 0.60 186,000 $ 1.15 $ 0.50 Chocolate Strawberry Anchovy 307,500 1.60 0.70 277,500 1.45 0.60 205,000 1.85 0.75 335,000 2.05 0.80 61,500 2.60 1.10 181,500 3.10 1.30 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.)

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 Actual Operating Results Flavor Gallons Selling Price per Gallon Variable Costs per Gallon Selling Price per Variable Costs per Gallons Gallon Gallon Vanilla 246,000 $ 1.30 $ 0.60 186,000 $ 1.15 $ 0.50 Chocolate Strawberry Anchovy 307,500 1.60 0.70 277,500 1.45 0.60 205,000 1.85 0.75 335,000 2.05 0.80 61,500 2.60 1.10 181,500 3.10 1.30 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.)

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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Munabhai
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 Actual Operating Results Selling Price per Variable Variable Costs per Costs per Flavor Gallons Gallon Gallon Gallons Gallon Gallon $ 1.35 $ 0.65 $ 1.20 $ 0.55 252,000 315,000 210,000 63,000 192,000 285,000 340,000 183,000 Vanilla Chocolate 1.70 0.80 1.55 0.70 Strawberry Anchovy 1.90 0.80 2.10 0.85 2.70 1.20 3.20 1.40 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 Anchovy Total