Homework Help is Here – Start Your Trial Now!
Business
Accounting
[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 $ $ $ Budgeted Industry Budget 38,000 28,000 66,000 981, 500 699, 400 120 $ 122 78 100 $1,596,000 616,000 $ 42 $ 22 Actual Industry Actual 38,350 30, 500 68,850 1,004,550 709, 750 119 124 78 84 $1,572,350 1, 220,000 41 40 Budgeted Wt Avg CM $33.5152

[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 $ $ $ Budgeted Industry Budget 38,000 28,000 66,000 981, 500 699, 400 120 $ 122 78 100 $1,596,000 616,000 $ 42 $ 22 Actual Industry Actual 38,350 30, 500 68,850 1,004,550 709, 750 119 124 78 84 $1,572,350 1, 220,000 41 40 Budgeted Wt Avg CM $33.5152

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

N2.

Account 

[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 $ $ $ Budgeted Industry Budget 38,000 28,000 66,000 981,500 699,400 120 122 78 100 $1,596,000 616,000 42 22 $ $ $ Actual Industry Actual 38,350 30,500 68,850 1,004,550 709, 750 119 124 78 84 41 40 $1,572, 350 1,220,000 $33.5152 Budgeted Wt Avg CM
Transcribed Image Text:[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 $ $ $ Budgeted Industry Budget 38,000 28,000 66,000 981,500 699,400 120 122 78 100 $1,596,000 616,000 42 22 $ $ $ Actual Industry Actual 38,350 30,500 68,850 1,004,550 709, 750 119 124 78 84 41 40 $1,572, 350 1,220,000 $33.5152 Budgeted Wt Avg CM
Sales units (cases) Domestic Export Industry Budget 981, 500 699, 400 1. Market share variance 2. Market size variance 3. Selling price variance Sales volume variance 4. Sales mix variance Sales quantity variance Industry Actual 1,004,550 709, 750 The budget was prepared with the expectation that the currency exchange rate would be $1.45 per euro. The actual average exchange rate for the period reflected the falling dollar, at $1.74 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.)
Transcribed Image Text:Sales units (cases) Domestic Export Industry Budget 981, 500 699, 400 1. Market share variance 2. Market size variance 3. Selling price variance Sales volume variance 4. Sales mix variance Sales quantity variance Industry Actual 1,004,550 709, 750 The budget was prepared with the expectation that the currency exchange rate would be $1.45 per euro. The actual average exchange rate for the period reflected the falling dollar, at $1.74 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.)
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Follow-up Questions
Read through expert solutions to related follow-up questions below.
Follow-up Question

Would you please provide the answer for #4 as well? Thank you!

Solution
Bartleby Expert
SEE SOLUTION
Knowledge Booster
Domestic transfer pricing
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS