Dinesh bhai Margot's Ice Cream operates several stores in a major metropolitan city and its suburbs. Its budget and operating data for the currentyear follow:FlavorVanillaChocolateStrawberryAnchovyRequired:GallonsBudgeted DataSellingPrice perGallonActual Operating ResultsVariableCosts perGallonSelingPrice perVariableCosts perGallonsGallonGallon324,000$ 1.95$ 1.25264,000 $ 1.80$ 1.15405,0002.902.00375,0002.751.90270,0002.501.4081,0003.902.40400,000201,0002.701.454.402.601. Compute these variances for the individual flavors and total quantity sold. (Use the Contribution Margin in your calculations and donot round intermediate calculations.)a.b.C.FlavorSales Volume VarianceSales Mix VarianceSales Quantity VarianceVanillaChocolateStrawberryUnfavorableUnfavorableFavorableUnfavorableUnfavorableFavorableFavorableFavorableFavorableAnchovyFavorableFavorableFavorableTotalFavorableFavorableFavorable

Variance:Variance is a very important concept in cost accounting that lets the company analyze the…

Required: 1. Compute these variances for the individual flavors and total quantity sold. (Use the Contribution Margin in your calculations and not round intermediate calculations.) a. b. C. Flavor Vanilla Chocolate Strawberry Anchovy Sales Volume Variance Sales Mix Variance Sales Quantity Variance Unfavorable Unfavorable Favorable Unfavorable Unfavorable Favorable Favorable Favorable Favorable Favorable Favorable Favorable Total Favorable Favorable Favorable

Required: 1. Compute these variances for the individual flavors and total quantity sold. (Use the Contribution Margin in your calculations and not round intermediate calculations.) a. b. C. Flavor Vanilla Chocolate Strawberry Anchovy Sales Volume Variance Sales Mix Variance Sales Quantity Variance Unfavorable Unfavorable Favorable Unfavorable Unfavorable Favorable Favorable Favorable Favorable Favorable Favorable Favorable Total Favorable Favorable Favorable

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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 Budgeted Data Actual Operating Results Gallons Selling Price per Gallon Variable Costs per Gallon Gallons Selling Price per Gallon Variable Costs per Gallon Vanilla 306,000 $ 1.80 $ 1.10 246,000 $ 1.65 $ 1.00 Chocolate 382,500 2.60 1.70 352,500 2.45 1.60 Strawberry 255,000 2.35 1.25 385,000 2.55 1.30 Anchovy 76,500 3.60 2.10 196,500 4.10 2.30 Required: 1. Compute these variances (sales volume variance, sales mix variance, sales quantity variance) 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 Selling Price per Actual Operating Results Selling Price per Variable Variable Costs per Costs per Flavor Gallons Gallon Gallon Gallons Gallon Gallon $ 1.35 $ 0.65 $ 1.20 $ 0.55 252,000 315,000 210,000 63,000 192,000 285,000 340,000 183,000 Vanilla Chocolate 1.70 0.80 1.55 0.70 Strawberry Anchovy 1.90 0.80 2.10 0.85 2.70 1.20 3.20 1.40 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.) a. b. C. Flavor Sales Volume Variance Sales Mix Variance Sales Quantity Variance Vanilla Chocolate Strawberry Anchovy Total
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 Vanilla Chocolate Strawberry Anchovy Required: Gallons Selling Price per Gallon Variable Costs per Selling Price per Variable Costs per Gallon Gallons Gallon Gallon 288,000 $ 1.65 $ 0.95 228,000 $ 1.50 $ 0.85 360,000 2.30 1.40 330,000 2.15 1.30 240,000 2.20 1.10 72,000 3.30 1.80 370,000 192,000 2.40 1.15 3.88 2.00 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 Sales Volume Variance Sales Mix Variance Sales Quantity Variance Chocolate Strawberry Anchovy Total
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 324,000 $ 1.95 Variable Costs per Gallon $ 1.25 Selling Price per Variable Costs per Gallons Gallon Gallon 264,000 $ 1.80 $ 1.15 Chocolate 405,000 2.90 2.00 375,000 2.75 1.90 Strawberry Anchovy 270,000 2.50 1.40 400,000 2.70 1.45 81,000 3.90 2.40 201,000 4.40 2.60 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.) a. b. C. Flavor Sales Volume Variance Sales Mix Variance Sales Quantity Variance Vanilla Chocolate Strawberry Unfavorable Unfavorable Favorable Unfavorable Favorable Unfavorable Favorable Favorable Favorable Anchovy Favorable Favorable Favorable Total Favorable Favorable Favorable
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 Budgeted Data Selling Price per Gallon Actual Operating Results Gallons Variable Costs per Gallon Selling Price per Variable Costs per Gallons Gallon Gallon Vanilla 246,000 $ 1.30 $ 0.60 186,000 $ 1.15 $ 0.50 Chocolate 307,500 1.60 0.70 277,500 1.45 0.60 Strawberry Anchovy 205,000 1.85 0.75 335,000 2.05 0.80 61,500 2.60 1.10 181,500 3.10 1.30 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
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 Flavor Gallons Selling Price per Gallon Vanilla 324,000 $ 1.95 Variable Costs per Gallon $ 1.25 Actual Operating Results Selling Variable Price per Costs per Gallons Gallon Gallon 264,000 $ 1.80 $ 1.15 Chocolate 405,000 2.90 2.00 375,000 2.75 1.90 Strawberry Anchovy 270,000 2.50 81,000 3.90 1.40 2.40 400,000 201,000 2.70 1.45 4.40 2.60 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.) Answer is complete but not entirely correct. b. Flavor Sales Volume Variance Sales Mix Variance Sales Quantity Variance Vanilla $ Chocolate Strawberry Anchovy Total $ 589,000 117,000 Unfavorable 87,000 Unfavorable 325,000 Favorable 468,000 Favorable Favorable $ 210,600 Unfavorable 261,000 Unfavorable 225,000…
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
We discuss how to prepare the different component budgets of theoperating budget, including the sales, production, direct materials,direct labor, manufacturing overhead, cost of goods sold, andselling and administrative expense budgets. We also discuss howto use information from all of these operating budgets to prepare abudgeted income statement. Knowledge Check 05WellWheats, Inc. produces breakfast cereal and sells each box, or unit, for $7.The company is projecting sales of 1,000 units for the month of March. The totalcost of producing one unit includes $2 for direct materials, $1 for direct labor,and $0.50 for manufacturing overhead.Calculate the cost of goods sold for the month of March.
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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 Selling Price per Actual Operating Results Selling Price per Variable Variable Costs per Costs per Flavor Gallons Gallon Gallon Gallons Gallon Gallon Vanilla 354,000 442,500 295,000 88,500 $2.20 $1.50 294,000 412,500 425,000 208,500 $2.05 $ 1.40 Chocolate 3.40 2.50 3.25 2.40 Strawberry Anchovy 2.75 1.65 2.95 1.70 4.40 2.90 4.90 3.10 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.) a. b. C. Flavor Sales Volume Variance Sales Mix Variance Sales Quantity Variance Vanilla Chocolate Strawberry Anchovy Total Prey Noxt
Gig Harbor Boating is the wholesale distributor of a small recreational catamaran sailboat. Management has prepared the following summary data to use in its annual budgeting process: Budgeted unit sales Selling price per unit Cost per unit Variable selling and administrative expense (per unit) Fixed selling and administrative expense (per year) Interest expense for the year Required: Prepare the company's budgeted income statement for the year. Gig Harbor Boating Budgeted Income Statement 600 $ 2,020 $ 1,670 $ 55 $ 107,000 $ 18,000
Max began manufacturing operations for Ocean Bath Oils in 20x2. His biggest customer is a national retail store chain that sells hair and bath products. Max would like an estimate of the company's income from operations for 20x2. Calculate the company's income from operations by completing the following operating budgets (Q1, Q2, Q3, Q4 AND Year Total)and budgeted income statement Sales Budget Units Price Total sales Q1 Sales in units Add ending inv Desired total units Less beginning inv Total to produce 4,000 5 20,000 Q2 400 3,000 Q3 5,000 Production Budget 1) Desired units of ending FG inventory = 10% of next quarter sales 2) Beginning FG inventory is 400, ending for Q4 = 600 Q1 Q2 Q3 Q4 Q4 5,000 600