Fundamentals of Cost Accounting
6th Edition
ISBN: 9781260708783
Author: LANEN, William
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Textbook Question
Chapter 17, Problem 44P
Sales Mix and Quantity Variances
Lake Cellars produces and sells white wine. The following data concern the three varietals of white wine the company currently offers. Sales data for August are given below:
Required
- a. Compute the sales price variance for all three wines.
- b. Compute the activity variance for Lake Cellars for August.
- c. Compute the mix and quantity variances for Lake Cellars for August.
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Income Statement
Prepare an income statement through gross profit for Venneman Company for the month ended March 31. Refer to the lists of Labels and Amount Descriptions for the exact wording of text entries. Enter all amounts as positive numbers except favorable variances. Use a minus sign to
indicate favorable variances. A colon (:) will automatically appear for you if it is required.
Instructions
Venneman Company
Venneman Company produces a product that requires 3.5 standard pounds per unit. The standard price is $5.10 per
Income Statement Through Gross Profit
pound. The company produced 14,000 units that required 48,000 pounds, which were purchased at $5.40 per pound. The
(Label)
product also requires 4 standard hours per unit at a standard hourly rate of $12 per hour. The 14,000 units required
58,000 hours at an hourly rate of $11.85 per hour. In addition, the standard variable overhead cost per unit is $0.80 per
1
hour and the actual variable factory overhead was $46, 100.…
Lake Cellars produces and sells white wine. The following data concern the three varietals of white wine the company currently offers.
Sales data for August are given as follows.
Budgeted selling price
Budgeted variable cost
Budgeted selling quantity
Actual selling price
Actual variable cost
Actual selling quantity
Req A
Req B and C
Sauvignon
Blanc
$ 11.10
$ 8.40
20,100
$11.35
$ 8.10
21,900
b. Activity variance
c. Mix variance
Chardonnay
$12.10
$10.20
Required:
a. Compute the sales price variance for all three wines.
b. Compute the activity variance for Lake Cellars for August.
c. Compute the mix and quantity variances for Lake Cellars for August.
Quantity variance
7,500
$8.15
$9.85
7,600
Complete this question by entering your answers in the tabs below.
Riesling Total
$ 9.00
$ 7.50
12,300
$ 9.40
$ 7.25
12,100
39,900
b. Compute the activity variance for Lake Cellars for August.
c. Compute the mix and quantity variances for Lake Cellars for August.
(Do not round intermediate…
Chapter 17 Solutions
Fundamentals of Cost Accounting
Ch. 17 - What complication arises in variance analysis when...Ch. 17 - Variance analysis can be useful in a manufacturing...Ch. 17 - How would you recommend accounting for variances...Ch. 17 - What does a manager learn by computing an industry...Ch. 17 - Why is there no efficiency variance for revenues?Ch. 17 - For what decisions would a manager want to know...Ch. 17 - If the sales activity or materials efficiency...Ch. 17 - Prob. 8RQCh. 17 - Prob. 9RQCh. 17 - What is the advantage of recognizing materials...
Ch. 17 - How could a professional sports firm use the mix...Ch. 17 - Prob. 12CADQCh. 17 - How could a hospital firm use the mix variance to...Ch. 17 - Prob. 14CADQCh. 17 - There is no reason to investigate favorable...Ch. 17 - Prob. 16CADQCh. 17 - Consider a firm in the sharing economy, such as...Ch. 17 - Prob. 18ECh. 17 - Prob. 19ECh. 17 - Prob. 20ECh. 17 - Variable Cost Variances: Materials Purchased and...Ch. 17 - Prob. 22ECh. 17 - Industry Volume and Market Share Variances DB Ice...Ch. 17 - Olive Tree Products sold 72,000 units during the...Ch. 17 - Prob. 25ECh. 17 - Sales Mix and Quantity Variances A-Zone Media...Ch. 17 - Prob. 27ECh. 17 - Sales Mix and Quantity Variances The restaurant at...Ch. 17 - Sales Mix and Quantity Variances Chow-4-Hounds...Ch. 17 - Materials Mix and Yield Variances Stacy, Inc.,...Ch. 17 - Materials Mix and Yield Variances Johns...Ch. 17 - Labor Mix and Yield Variances Matts Eat N Run has...Ch. 17 - Flexible Budgeting, Service Organization KB is a...Ch. 17 - Prob. 34ECh. 17 - Prob. 35ECh. 17 - Sales Price and Activity Variances EZ-Tax is a tax...Ch. 17 - Write a memo to the senior manager of EZ-Tax...Ch. 17 - Variable Cost Variances The standard direct labor...Ch. 17 - Refer to the information in Exercise...Ch. 17 - Prob. 40PCh. 17 - Variable Cost Variances: Materials Purchased and...Ch. 17 - Industry Volume and Market Share Variances:...Ch. 17 - Industry Volume and Market Share: Missing Data The...Ch. 17 - Sales Mix and Quantity Variances Lake Cellars...Ch. 17 - Analyze Performance for a Restaurant Dougs Diner...Ch. 17 - Nonmanufacturing Cost Variances FSBCU is a...Ch. 17 - Performance Evaluation in Service Industries Bay...Ch. 17 - Refer to the information in Problem...Ch. 17 - Prob. 49PCh. 17 - Refer to the data for the Peninsula Candy Company...Ch. 17 - Materials Mix and Yield Variances Plano Products...Ch. 17 - Pinnuck Products makes a liquid solvent using two...Ch. 17 - Labor Mix and Yield Variances Matthews Bros, is a...Ch. 17 - Refer to the information in Problem...Ch. 17 - Derive Amounts for Profit Variance Analysis...Ch. 17 - Flexible Budget Oak Hill Township operates a motor...
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