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 348,000 435,000 290,000 87,000 Chocolate Strawberry Anchovy Total Budgeted Data Selling Variable Price per Costs per Gallon Gallon $ 2.15 $ 1.45 2.40 1.60 2.80 3.30 2.70 4.30 Actual Operating Results Selling Variable Price per Costs per a. Sales Volume Variance Gallons 288,000 405,000 420,000 207,000 Gallon $ 2.00 3.15 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.) 2.90 4.80 Gallon $ 1.35 2.30 1.65 3.00 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 Flavor Vanilla Gallons 348,000 435,000 290,000 87,000 Chocolate Strawberry Anchovy Total Budgeted Data Selling Variable Price per Costs per Gallon Gallon $ 2.15 $ 1.45 2.40 1.60 2.80 3.30 2.70 4.30 Actual Operating Results Selling Variable Price per Costs per a. Sales Volume Variance Gallons 288,000 405,000 420,000 207,000 Gallon $ 2.00 3.15 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.) 2.90 4.80 Gallon $ 1.35 2.30 1.65 3.00 b. Sales Mix Variance C. 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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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.

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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
Vanilla
Chocolate
Strawberry
Anchovy
Gallons
348,000
435,000
290,000
87,000
Flavor
Vanilla
Chocolate
Strawberry
Anchovy
Total
Budgeted Data
Selling Variable
Price per Costs per
Gallon
Gallon
$ 2.15
$ 1.45
3.30
2.70
4.30
2.40
1.60
2.80
a.
Actual Operating Results
Selling
Price per
Gallon
$ 2.00
3.15
2.90
4.80
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
Gallons
288,000
405,000
420,000
207,000
Variable
Costs per
Gallon
$ 1.35
2.30
1.65
3.00
b.
Sales Mix Variance
C.
Sales Quantity Variance

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