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: Budgeted Data Actual Operating Results Flavor Gallons Selling Price per Gallon Vanilla Chocolate 318,000 $ 1.90 Variable Costs per Gallon $ 1.20 Gallons Selling Price per Gallon Variable Costs per Gallon 258,000 $ 1.75 $ 1.10 397,500 2.80 1.90 367,500 2.65 1.80 Strawberry Anchovy 265,000 2.45 1.35 395,000 2.65 1.40 79,500 3.80 2.30 199,500 4.30 2.50 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.)
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: Budgeted Data Actual Operating Results Flavor Gallons Selling Price per Gallon Vanilla Chocolate 318,000 $ 1.90 Variable Costs per Gallon $ 1.20 Gallons Selling Price per Gallon Variable Costs per Gallon 258,000 $ 1.75 $ 1.10 397,500 2.80 1.90 367,500 2.65 1.80 Strawberry Anchovy 265,000 2.45 1.35 395,000 2.65 1.40 79,500 3.80 2.30 199,500 4.30 2.50 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.)
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter6: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 1CMA: Taylor Corporation is analyzing the cost behavior of three cost items, A, B, and C, to budget for...
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Concept explainers
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Question
Transcribed Image Text: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
318,000
$ 1.90
Variable
Costs per
Gallon
$ 1.20
Gallons
Selling
Price per
Gallon
Variable
Costs per
Gallon
258,000
$ 1.75
Chocolate
397,500
2.80
1.90
367,500
2.65
$ 1.10
1.80
Strawberry
Anchovy
265,000
2.45
79,500
3.80
1.35
2.30
395,000
2.65
1.40
199,500
4.30
2.50
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.)
Flavor
Vanilla
Chocolate
Strawberry
Anchovy
Total
a.
b.
Sales Volume Variance
Sales Mix Variance
Sales Quantity Variance
Unfavorable
Unfavorable
Favorable
Favorable
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