Sales Mix and Quantity VariancesChow-4-Hounds (C4H) makes pet foodfor sale in supermarkets. C4Hproduces two general types: Brandedand Generic. The two differ primarily inthe ingredients used. At budget,Branded sells for $12 per case and hasa variable cost to produce $5 per case.Generic sells for a budgeted $9 percase and has a budgeted variable costto produce $4 per case. C4H expectsto sell 30 percent Branded and 70percent Generic regardless of the salesvolume. C4H budgeted total sales of200,000 cases for March. The actualcase volume sold in March was210,000 cases, of which 60,000 wereBranded. Total actual revenues inMarch were $2,055,000, of which$780,000 were from sales of Brandedcases.Required1. Compute the activity variance forC4H for March.2. Compute the mix and quantityvariances for March.

Variance -The discrepancy between an actual and a predicted outcome is referred to as variance. The…

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

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Activity Variance, Spending Variance, Materials Price Variance, Materials Quantity Variance Southside Pizzeria wants to improve its ability to manage the ingredient costs associated with making and selling its pizzas. For the month of June, the company plans to make 1,000 pizzas. It has created a planning budget that includes a cost formula for mozzarella cheese of $2.40 per pizza. At the end of June, Southside actually sold 1,100 pizzas and the actual cost of the cheese that it used during the month was $2,632. Required 1. What is the mozzarella cheese activity variance for June? 2. What is the mozzarella cheese spending variance for June? 3. Assume that the company establishes a price standard of $0.30 per ounce for mozzarella cheese and a quantity standard of eight ounces of cheese per pizza. Also, assume that Southside actually used 9,400 ounces of cheese during the month to make 1,100 pizzas. a. What is the materials price variance for mozzarella cheese for June? b. What is the…
Calculator Scratch Pad Sportz Co manufactures and sells two types of sports watch: the Raptor X5, which is designed for running and cycling; and the Hydra Z7, which is designed for diving. Sportz Co operates a standard costing system and uses variance analysis to assess sales performance each quarter. Quarter 1 The following information is available for Quarter 1: Raptor X5 Budget Hydra Z7 Budget Actual Sales volume (units) 760 $/unit 260 Actual 880 $/unit 250 760 $/unit 630 $/unit Sales price 325 300 Variable costs 110 105 130 120 40 40 50 Fixed costs Profit 50 110 105 145 130 Quarter 2 During Quarter 2, the sales volume of both the Raptor X5 and the Hydra Z7 were significantly adverse. Fewer units of both products were produced due to a number of unplanned stoppages which were a consequence of breakdowns in manufacturing equipment. Quarter 3 The following variances were calculated for both products: Total sales mix contribution variance $2,025 Favourable $9,675 Adverse Total sales…
Calculating the Yield Variance Mangia Pizza Company makes frozen pizzas that are sold through grocery stores. Mangia developed the following standard mix for spreading on premade pizza shells to produce 17 giant-size sausage pizzas. Direct Material Mix Mix Proportion SP Standard Cost Tomato sauce 10 lbs. 0.325 $1.50 $15.00 Cheese 11 0.360 2.70 29.70 Sausage 9 0.315 2.10 18.90 Total 30 lbs. $63.60 Mangia put a batch of 2,000 pounds of direct materials (enough for 1,133 frozen sausage pizzas) into process. Of the total, 680 pounds were tomato sauce, 880 pounds were cheese, and the remaining 440 pounds were sausage. The actual yield was 760 pizzas. 1. Calculate the standard yield for actual input of 2,000 pounds of direct materials. Do not round intermediate calculations. Round your final answer to nearest whole number.fill in the blank 2. Calculate the yield variance. Do not round intermediate calculations, except…
Exercise 17-31 (Algo) Sales Mix and Quantity Variances (LO 17-4) Allonby Foods processes frozen meals for sale in grocery and other retail outlets. Two versions are produced: The FlavorPak version has a budgeted price of $16 per case and a standard variable cost of $9 per case. The Gourmet version has a budgeted price of $29 per case and a standard variable cost of $18 per case. At the beginning of the year, the Marketing Group at Allonby estimated that the company would sell 60,270 cases of the FlavorPak version and 36,162 cases of the Gourmet version. The actual results for the year showed that 56,970 cases of the FlavorPak version and 37,980 cases of the Gourmet version were sold. Total revenues generated by sales of both versions amounted to $2,011,950 with $1,076,400 coming from the Gourmet version sales. Required: a. Compute the sales activity variance for the year. b. Compute the mix and quantity variances for the year. Complete this question by entering your answers in the tabs…
Q. Calculate Static-budget variance for operating income forEllis for April 2017
Current Attempt in Progress 4 Swifty is the primary provider of spirit apparel for many high schools. Management has been evaluating two of its key products for changes in selling price and sales volume in comparison to expectation: the quarter-zip jacket and the hooded sweatshirt. Swifty's expectations and actual results were as follows. Quarter-zip Sweatshirt Budgeted Sales Volume Sales price variance Sales activity variance eTextbook and Media Save for Later 430 600 Actual Sales Volume 500 540 Budgeted Selling Price $38 $53 Actual Selling Price How much was Swifty's sales price variance this year? How much was its comprehensive sales activity variance? $40 $51 Budgeted Variable Unit Cost $24 $30 Attempts: 0 of 3 used Submit Answer
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
Flexible Budgeting and Variance Analysis I Love My Chocolate Company makes dark chocolate and light chocolate. Both products require cocoa and sugar. The following planning information has been made available: Standard Amount per Case Dark Chocolate Light Chocolate Standard Price per Pound Cocoa 12 lb. 9 lb. $4.9 Sugar 10 lb. 14 lb. 0.6 Standard labor time 0.4 hr. 0.5 hr. Dark Chocolate Light Chocolate Planned production 5,000 cases 11,300 cases Standard labor rate $15 per hr. $15 per hr. I Love My Chocolate does not expect there to be any beginning or ending inventories of cocoa or sugar. At the end of the budget year, I Love My Chocolate Company had the following actual results: Dark Chocolate Light Chocolate Actual production (cases) 4,800 11,800 Actual Price per Pound Actual Pounds Purchased and Used Cocoa $5 164,600 Sugar 0.55 207,900 Actual Labor Rate Actual Labor Hours Used Dark chocolate…
Exercise 17-31 (Algo) Sales Mix and Quantity Variances (LO 17-4) Allonby Foods processes frozen meals for sale in grocery and other retail outlets. Two versions are produced: The FlavorPak version has a budgeted price of $16 per case and a standard variable cost of $9 per case. The Gourmet version has a budgeted price of $29 per case and a standard variable cost of $18 per case. At the beginning of the year, the Marketing Group at Allonby estimated that the company would sell 60,060 cases of the FlavorPak version and 36,036 cases of the Gourmet version. The actual results for the year showed that 56,760 cases of the FlavorPak version and 37,840 cases of the Gourmet version were sold. Total revenues generated by sales of both versions amounted to $1,997,950 with $1,062,400 coming from the Gourmet version sales. Required: a. Compute the sales activity variance for the year. b. Compute the mix and quantity variances for the year. Complete this question by entering your answers in the tabs…
Titanium Blades refines titanium for use in all brands of razor blades. It prepared a static budget for the sales of 5,500 units. The following variances were observed: Units Sales Variable Expenses Fixed Expenses Net Income (loss) Units Sales Actual Results Determine the static budget and use the information to prepare a flexible budget and analysis for the 6,500 units actually sold. If no effect, select "No Effect" and leave the amount boxes blank. For those boxes in which you must enter negative numbers use a minus sign. (Example: -300). Static budget Flexible budget Actual Results Variances Variable Expenses Fixed Expenses Net Income (Loss) Variances $ $169,000 $26,000 Favorable 77,800 11,800 Unfavorable 88,300 300 Unfavorable $2,900 $13,900 Unfavorable No Effect Favorable Unfavorable Unfavorable ✓ ✓ ✓ ✓
Please review part A. It isn't correct
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