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Required information [The following information applies to the questions displayed below.] Tall Pines Brewery (TPB) makes two specialty beers in its microbrewery: Golden Ale and Dark Ale. Both beers sell for the same price per case in the U.S. market and in the export market. The latter market is primarily European countries. Both beers also have the same variable production costs, though the export product has slightly higher variable costs due to shipping and other distribution costs associated with the export beers. The price, cost, and market information for the two beers are shown below: Sales units (cases) Domestic Export Total Price per case Domestic Export Variable cost per case Domestic Export Contribution margin per case Domestic Export Total contribution margin Domestic Export Sales units (cases) Domestic Export Required: What is the market share variance? 2. What is the market size variance? 1. Market share variance 2. Market size variance 3. Selling price variance Sales volume variance $ 4. Sales mix variance $ Sales quantity variance Budgeted 32,000 22,000 54,000 108 $ 110 72 88 951,500 675,400 36 22 $ $ Industry Industry Budget Actual 974,550 685,750 Actual Favorable Unfavorable 32,350 24,500 56,850 $1,152,000 $1,132,250 484,000 107 112 72 78 The budget was prepared with the expectation that the currency exchange rate would be $1.39 per euro. The actual average exchange rate for the period reflected the falling dollar, at $1.62 per euro. 35 34 3. What is the selling price variance and sales volume variance? What is the sales mix variance and sales quantity variance? For all requirements, do not round intermediate calculations. Round your answers to 2 decimal places.) Budgeted Wt Avg CM 833,000 $30.2963

Required information [The following information applies to the questions displayed below.] Tall Pines Brewery (TPB) makes two specialty beers in its microbrewery: Golden Ale and Dark Ale. Both beers sell for the same price per case in the U.S. market and in the export market. The latter market is primarily European countries. Both beers also have the same variable production costs, though the export product has slightly higher variable costs due to shipping and other distribution costs associated with the export beers. The price, cost, and market information for the two beers are shown below: Sales units (cases) Domestic Export Total Price per case Domestic Export Variable cost per case Domestic Export Contribution margin per case Domestic Export Total contribution margin Domestic Export Sales units (cases) Domestic Export Required: What is the market share variance? 2. What is the market size variance? 1. Market share variance 2. Market size variance 3. Selling price variance Sales volume variance $ 4. Sales mix variance $ Sales quantity variance Budgeted 32,000 22,000 54,000 108 $ 110 72 88 951,500 675,400 36 22 $ $ Industry Industry Budget Actual 974,550 685,750 Actual Favorable Unfavorable 32,350 24,500 56,850 $1,152,000 $1,132,250 484,000 107 112 72 78 The budget was prepared with the expectation that the currency exchange rate would be $1.39 per euro. The actual average exchange rate for the period reflected the falling dollar, at $1.62 per euro. 35 34 3. What is the selling price variance and sales volume variance? What is the sales mix variance and sales quantity variance? For all requirements, do not round intermediate calculations. Round your answers to 2 decimal places.) Budgeted Wt Avg CM 833,000 $30.2963

FINANCIAL ACCOUNTING
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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Required information [The following information applies to the questions displayed below] Tall Pines Brewery (TPB) makes two specialty beers in its microbrewery: Golden Ale and Dark Ale. Both beers sell for the same price per case in the U.S. market and in the export market. The latter market is primarily European countries. Both beers also have the same variable production costs, though the export product has slightly higher variable costs due to shipping and other distribution costs associated with the export beers. The price, cost, and market information for the two beers are shown below: Sales units (cases) Domestic Export Total Price per case Domestic Export Variable cost per case Domestic Export Contribution margin per case Domestic Export Total contribution margin Domestic Export Sales units (cases) Domestic Export 1. Market share variance 2. Market size variance 3. Selling price variance Sales volume variance $ 4. Sales mix variance $ Sales quantity variance $ Budgeted Industry Budget 32,000 22,000 54,000 951,500 675,400 108 $ 110 72 $ 88 36 $ 22 Industry Actual 974,550 685,750 Actual $1,152,000 $1,132,250 484,000 32,350 24,500 56,850 107 112 Favorable Unfavorable 72 78 35 34 The budget was prepared with the expectation that the currency exchange rate would be $1.39 per euro. The actual average exchange rate for the period reflected the falling dollar, at $1.62 per euro. Required: 1. What is the market share variance? 2. What is the market size variance? 3. What is the selling price variance and sales volume variance? 4. What is the sales mix variance and sales quantity variance? (For all requirements, do not round intermediate calculations. Round your answers to 2 decimal places.) Budgeted Wt Avg CM 833,000 $30.2963
Transcribed Image Text:Required information [The following information applies to the questions displayed below] Tall Pines Brewery (TPB) makes two specialty beers in its microbrewery: Golden Ale and Dark Ale. Both beers sell for the same price per case in the U.S. market and in the export market. The latter market is primarily European countries. Both beers also have the same variable production costs, though the export product has slightly higher variable costs due to shipping and other distribution costs associated with the export beers. The price, cost, and market information for the two beers are shown below: Sales units (cases) Domestic Export Total Price per case Domestic Export Variable cost per case Domestic Export Contribution margin per case Domestic Export Total contribution margin Domestic Export Sales units (cases) Domestic Export 1. Market share variance 2. Market size variance 3. Selling price variance Sales volume variance $ 4. Sales mix variance $ Sales quantity variance $ Budgeted Industry Budget 32,000 22,000 54,000 951,500 675,400 108 $ 110 72 $ 88 36 $ 22 Industry Actual 974,550 685,750 Actual $1,152,000 $1,132,250 484,000 32,350 24,500 56,850 107 112 Favorable Unfavorable 72 78 35 34 The budget was prepared with the expectation that the currency exchange rate would be $1.39 per euro. The actual average exchange rate for the period reflected the falling dollar, at $1.62 per euro. Required: 1. What is the market share variance? 2. What is the market size variance? 3. What is the selling price variance and sales volume variance? 4. What is the sales mix variance and sales quantity variance? (For all requirements, do not round intermediate calculations. Round your answers to 2 decimal places.) Budgeted Wt Avg CM 833,000 $30.2963
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