Variance analysis, multiple products. The Robin’s Basket operates a chain of Italian gelato stores. Although the Robin’s Basket charges customers the same price for all flavors, production costs vary, depending on the type of ingredients. Budgeted and actual operating data of its Washington, D.C., store for August 2017 are as follows: Budget for August 2017Selling Priceper PintVariable CostContributionSales VolumeMargin per Pintsin Pintsper Pint$4.80Mint chocolate chip$9.00$4.2035,000Vanilla9.0045,0003.205.805.00Rum raisin9.004.0020,000100,000Actual for August 2017Selling Priceper PintVariable CostSales VolumeContributionin PoundsMargin per Poundper PoundMint chocolate chip$9.00$4.60$4.4033,750Vanilla9.003.255.7556,250Rum raisin9.005.153.8522,500112,500The Robin's Basket focuses on contribution margin in its variance analysis.Compute the total sales-volume variance for August 2017.Compute the total sales-mix variance for August 2017.1.Required2. 3. Compute the total sales-quantity variance for August 2017.4. Comment on your results in requirements 1, 2, and 3.

Answered: Budget for August 2017 Selling Price…

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter7: The Master Budget And Flexible Budgeting

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Variance analysis, multiple products. The Robin’s Basket operates a chain of Italian gelato stores. Although the Robin’s Basket charges customers the same price for all flavors, production costs vary, depending on the type of ingredients. Budgeted and actual operating data of its Washington, D.C., store for August 2017 are as follows:

Budget for August 2017
Selling Price
per Pint
Variable Cost
Contribution
Sales Volume
Margin per Pints
in Pints
per Pint
$4.80
Mint chocolate chip
$9.00
$4.20
35,000
Vanilla
9.00
45,000
3.20
5.80
5.00
Rum raisin
9.00
4.00
20,000
100,000
Actual for August 2017
Selling Price
per Pint
Variable Cost
Sales Volume
Contribution
in Pounds
Margin per Pound
per Pound
Mint chocolate chip
$9.00
$4.60
$4.40
33,750
Vanilla
9.00
3.25
5.75
56,250
Rum raisin
9.00
5.15
3.85
22,500
112,500
The Robin's Basket focuses on contribution margin in its variance analysis.
Compute the total sales-volume variance for August 2017.
Compute the total sales-mix variance for August 2017.
1.
Required
2.

3. Compute the total sales-quantity variance for August 2017.
4. Comment on your results in requirements 1, 2, and 3.

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