Margot's Ice Cream operates several stores in a major metropolitan city and its suburbs. Its budget and operating data forthe current year follow:Budgeted DataSellingPrice per Costs perGallonActual Operating ResultsSelling VariablePrice per Costs perGallon$ 0.65VariableFlavorGallons264,000330,000220,00066,000GallonGallonsGallonVanillaChocolateStrawberryAnchovy$ 1.45$ 0.75204,000300,000350,000186,000$ 1.301.752.201.902.001.000.900.900.952.901.403.401.60Required:1. Compute these variances for the individual flavors and total quantity sold. (Use the Contribution Margin in yourcalculations and do not round intermediate calculations.)b.FlavorSales Volume VarianceSales Mix VarianceSales Quantity Variance.VanillaChocolateStrawberryAnchovyTotal

The question is based on the concept of Cost Accounting.

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 Variable Price per Costs per Gallon Actual Operating Results Selling Price per Costs per Gallon $ 1.30 1.75 Variable Flavor Vanilla Chocolate Strawberry Anchovy Gallons Gallon Gallons 204,000 300, 000 350,000 186,000 Gallon $ 1.45 $ 0.75 264,000 330,000 220,000 66,000 $ 0.65 0.90 0.95 1.90 1.00 2.00 2.90 0.90 1.40 2.20 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.) Flavor Sales Volume Variance Sales Mix Variance Sales Quantity Variance Vanilla Chocolate

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 Variable Price per Costs per Gallon Actual Operating Results Selling Price per Costs per Gallon $ 1.30 1.75 Variable Flavor Vanilla Chocolate Strawberry Anchovy Gallons Gallon Gallons 204,000 300, 000 350,000 186,000 Gallon $ 1.45 $ 0.75 264,000 330,000 220,000 66,000 $ 0.65 0.90 0.95 1.90 1.00 2.00 2.90 0.90 1.40 2.20 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.) Flavor Sales Volume Variance Sales Mix Variance Sales Quantity Variance Vanilla Chocolate

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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Dineshbhai
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Dinesh bhai
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.
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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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 40,000 60,000 30,000 60,000 Each T-shirt is expected to sell for $15. The purchasing manager buys the T-shirts for $6 each. The company needs to have enough T-shirts on hand at the end of each quarter to fill 25 percent of the next quarter’s sales demand. Selling and administrative expenses are budgeted at $80,000 per quarter plus 10 percent of total sales revenue. Required: Determine budgeted sales revenue for each quarter. Determine budgeted cost of merchandise purchased for each quarter. Determine budgeted cost of good sold for each quarter. Determine selling and administrative expense for each quarter. Complete the budgeted income statement for each quarter.
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