Earle Soup Company makes three varieties of soups: Bean, Tomato, and Vegetable. Sales volume for the annual budget is determinedby estimating the total market volume for soups and then applying the company's prior year market share, adjusted for plannedchanges due to company programs for the coming year. Volume is apportioned among the three varieties of soup based on the prioryear's product mix, again adjusted for planned changes for the coming year.The following are the company budget and the results of operations for the most recent quarter.Budget (all units and costs in thousands)Sales-unitsSales-dollarsVariable costsContribution marginManufacturing fixed costProduct marginMarketing and administrative costs (all fixed)Operating profitActual fall units and costs in thousands)Sales-unitsSales-dollarsVariable costsContribution margin:Manufacturing fixed costProduct marginMarketing and administrative costs (all fixed)Operating profit$ 1,200840$360240$ 120Sales mix varianceQuantity varianceBean30 casesBean.24 cases$ 9726725. 300252Tomato$ 2,4001,920$ 480240$ 24030 casesTomato30 cases$ 2,4001.932$468264$ 204Vegetable60 cases$ 3,6002,760$ 840360$ 480Vegetable.63 cases$ 3,6002,784$ 816378$ 438Industry volume for the quarter was estimated at 1.2 million cases for budgeting purposes. Actual industry volume for the quarter was1,140,000 cases.Required:Break down the total activity variance into sales mix and quantity parts.Note: Do not round intermediate calculations. Enter your answers in thousands. Indicate the effect of each variance by selecting"F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.Total120 cases$ 7,2005,520$1,680848$ 840300$548$ 6,9725,388$1,584894$ 6983305368Total117 cases

Sales mix variance = Revised standard sales - Standard sales Standard sales = Actual selling…

Required: Break down the total activity variance into sales mix and quantity parts. Note: Do not round intermediate calculations. Enter your answers in thousands. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option. Sales mix variance Quantity variance

Required: Break down the total activity variance into sales mix and quantity parts. Note: Do not round intermediate calculations. Enter your answers in thousands. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option. Sales mix variance Quantity variance

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

The principle of exceptions allows managers to focus on correcting variances between O a. competitor's costs and standard costs b. standard costs and actual costs O c. competitor's costs and actual costs d. variable costs and actual costs
have some numbers figured out but not all of them
Required Indicate whether each of the following variances is favorable (F) or unfavorable (U). The first one has been done as an example. Note: Select "None" if there is no effect (1.e., zero variance). Item to Classify Sales volume Sales price Materials cost Materials usage Labor cost Labor usage Fixed cost spending Fixed cost per unit (volume) $ $ $ $ $ Standard 40,100 units 3.61 per unit 3.00 per pound 91,100 pounds 10.10 per hour 61,100 hours 401,000 3.21 per unit $ $ $ $ $ Actual 42,100 units 3.64 per unit 3.10 per pound 90,100 pounds 9.70 per hour 61,900 hours 391,000 3.17 per unit Type of Variance F
This Is Accounting Question Don't Use Chat GPT
Please do not give solution in image format thanku
Which ONE of the following is true? a. Assume all costs are fixed when creating a flexible budget b. None of the other available answers are true c. There can only be one cost driver d. Unfavorable activity variances for costs will typically accompany a favorable activity variance for revenue. e. Variances are classified according to the impact on revenue f. Assume all costs are variable when creating a flexible budget
Please do not give solution in image format thanku
Please do not give solution in image format thanku
please answer within the format by providing formula the detailed workingPlease provide answer in text (Without image)Please provide answer in text (Without image)Please provide answer in text (Without image)
Which method of closing out the fixed MOH volume variance will have no effect on the financial statements, no matter the capacity used? Question options: a) Prorating the fixed MOH volume variance to FG inventory and COGS. b) Allocating the fixed MOH volume variance equally among WIP Inventory, FG inventory and COGS. c) Prorating the fixed MOH volume variance to WIP Inventory, FG inventory and COGS. d) Allocating the fixed MOH volume variance to COGS.
please guve the the accurate answers only please What is the labor efficiency variance? answer: ??????? since it is unfavorable What is the variable overhead efficiency variance? answer: ?????????? since its unfavorable What is the variable overhead rate variance? answer:??????????? since it is unfavorable
Match the term with its corresponding definition. Do not give Direct answer kindly explain it one or 2 lines - A. B. C. D. E. F. G. H. I. J. Revenue Price Variance - A. B. C. D. E. F. G. H. I. J. Budget Performance Report - A. B. C. D. E. F. G. H. I. J. Volume Variance - A. B. C. D. E. F. G. H. I. J. Controllable Variance - A. B. C. D. E. F. G. H. I. J. Ideal Standards - A. B. C. D. E. F. G. H. I. J. Direct Labor rate Variance - A. B. C. D. E. F. G. H. I. J. Direct Materials…