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.

Question

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.
Expand
Transcribed Image Text

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.
Expand
Transcribed Image Text

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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