Question

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 Vanilla Chocolate Strawberry Anchovy Budgeted Data Selling Variable Price per costs per Gallon Gallon $1.50 $0.80 2.00 1.10 2.05 0.95 3.00 1.50 Gallons 270,000 337,500 225,000 67,500 $ 1 Actual Operating Results Selling Variable Price per costs per Gallons Gallon Gallon 210,000 $1.35 $0.70 307,500 1.85 1.00 355,000 2.25 1.00 187,500 3.50 1.70 Required: 1. Compute these variances for the individual flavors and total quantity sold. (Do not round intermediate calculations.) a. b. c. Sales Quantity Variance Flavor Sales Volume Variance Sales Mix Variance Vanilla Chocolate Strawberry Anchovy Total

Answer 1

Sales volume Vauance : CAQ - Ba) BP Sales mix vananc & CAQ-RAQ) X BP Sales Quantity vacances CRAQ-BQ) ×B P BQ = Budgled Qty RAQ = Revised Actual Qty BP = Budgled purce AQ - Actual QM' * Vanilla les volume variance (210.000 - 20.000)x & 15 = 60,000x $1.5 $ 90,000 (A) Sales me'ye Vauiana Ca10.000 - 818,000) * $1.5 Saules Qty vavance - 108.000x $1.5 ; $ 162.000 (A) = (318.000 - 270,000 ) *815 ? 481000 x $1.5 - $42000 (6) * Chocolate Sales volume vanance (307,500- 337,500) *$2 5 301000x$a - $60,000 CAD Sales Mix Variance : C307,500 - 894,500 X 82 • 490,000182 - $180.000 (A) Sales Q14 huance ? (394,500 - 33415007x82 60.000* $2 = $120.000 CF)

* Stuacobe 114 Sales volume Vauance - (855,000 -225,000 ) x $ 2:05 130.000 y $2.05 - $266,500CP) Sales mer vaiana (966,000 - 265,000 ) * $ 2:05 • 90:000*$2.05 $184,500 (B) Sates Qru vacance = (265.000 - 225,000)* $2.05 40.000* $2:05 = $ 821000 ) * Anchovy Salu volume hawana - (184,500 - 67,500) $3 = 120.000 x $3 $360,000 (E) sales mix variance (184,500 - 79,500) Ⓡ$ 3 . 108.000 * $ 3 - $3241000 (A) Sales Qty Vauance = (49,500 - 67,500)x$3 - 12.000883 = $36.000 CF) Plavo! Sale Volume vaiane Sailet mix Vaiana Sales Q4 Varane van lla Adrese $ 162,000 Adrene $42.000 Rancuable chocolate 90,000 $60.000 $erroep $966 500 Advede $180.000 | Advern $120000 favouable Skuacoberry farceuable $184,500 Havaiah 482,000 favouable Anchovy fotal (3601000 $476500 Havouable Harowable $324000 $166,500 Lavoural $361000 delowa Horowa i $310.000 darowable

Working Notes Revised Actual Quy Totou uniti Sold - 210000+ 807,500+8651000+18+150 0 - 1060,000 Vanilla Strawobei Anthony choclate 3775 2.5 0.75 RAQ. 318,000 397,500 265,000 79,500