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Sales Mix and Quantity Variances Chow-4-Hounds (C4H) makes pet food for sale in supermarkets. C4H produces two general types: Branded and Generic. The two differ primarily in the ingredients used. At budget, Branded calls for $12 por pro and bas

Sales Mix and Quantity Variances Chow-4-Hounds (C4H) makes pet food for sale in supermarkets. C4H produces two general types: Branded and Generic. The two differ primarily in the ingredients used. At budget, Branded calls for $12 por pro and bas

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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Sales Mix and Quantity Variances Chow-4-Hounds (C4H) makes pet food for sale in supermarkets. C4H produces two general types: Branded and Generic. The two differ primarily in the ingredients used. At budget, Branded sells for $12 per case and has a variable cost to produce $5 per case. Generic sells for a budgeted $9 per case and has a budgeted variable cost to produce $4 per case. C4H expects to sell 30 percent Branded and 70 percent Generic regardless of the sales volume. C4H budgeted total sales of 200,000 cases for March. The actual case volume sold in March was 210,000 cases, of which 60,000 were Branded. Total actual revenues in March were $2,055,000, of which $780,000 were from sales of Branded cases. Required 1. Compute the activity variance for C4H for March. 2. Compute the mix and quantity variances for March.
Transcribed Image Text:Sales Mix and Quantity Variances Chow-4-Hounds (C4H) makes pet food for sale in supermarkets. C4H produces two general types: Branded and Generic. The two differ primarily in the ingredients used. At budget, Branded sells for $12 per case and has a variable cost to produce $5 per case. Generic sells for a budgeted $9 per case and has a budgeted variable cost to produce $4 per case. C4H expects to sell 30 percent Branded and 70 percent Generic regardless of the sales volume. C4H budgeted total sales of 200,000 cases for March. The actual case volume sold in March was 210,000 cases, of which 60,000 were Branded. Total actual revenues in March were $2,055,000, of which $780,000 were from sales of Branded cases. Required 1. Compute the activity variance for C4H for March. 2. Compute the mix and quantity variances for March.
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