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	Budgeted Data								Actual Operating Results
	Gallons		Selling Price per Gallon			Variable Costs per Gallon			Gallons			Selling Price per Gallon			Variable Costs per Gallon
Vanilla	276,000		$	1.55		$	0.85			216,000		$	1.40		$	0.75
Chocolate	345,000			2.10			1.20			315,000			1.95			1.10
Strawberry	230,000			2.10			1.00			360,000			2.30			1.05
Anchovy	69,000			3.10			1.60			189,000			3.60			1.80

Required:

1. Compute these variances for the individual flavors and total quantity sold. (Do not round intermediate calculations.) (PLEASE FOLLOW THE FOLLOWING FORMAT)

Required: 1. Compute these variances for the individual flavors and total quantity soldi. (Do not round intermediate calculations Sales Volume Variance Sales Mix Variance Vanila Strawberry Anchovy Total

Answer 1

Dear Student ,

Please see below complete Variance Analysis relates to Sales Volume , Sales Mix , Sales Quantity variance with detail note . Please see line by line . Any doubt , please drop me message , I will provide details accordingly

Thank You !!

Budgeted Data
Flavour	Gallons	Selling Price $/ Gallon	Variable Cost $/ Gallon
Vanila	2,76,000	1.55	0.85
Chocolate	3,45,000	2.10	1.20
Strawbery	2,30,000	2.10	1.00
Anchovy	69,000	3.10	1.60
Actual Data
Flavour	Gallons	Selling Price $/ Gallon	Variable Cost $/ Gallon
Vanila	2,16,000	1.40	0.75
Chocolate	3,15,000	1.95	1.10
Strawbery	3,60,000	2.30	1.05
Anchovy	1,89,000	3.60	1.80

Sales Volume Variance

	Actual Unit Sold-A	Budgeted Unit Sold-B	Diff(A-B)=C	Selling Price $/ Gallon-E	Variable Cost $/ Gallon-F	Contribution Cost $/ Gallon-(E-F)=G	Sales Volume Variance(C*G) $	Unfavorable (UF) / Flavorable (F)
Vanila	2,16,000	2,76,000	-60,000	1.55	0.85	0.70	-42,000	UF
Chocolate	3,15,000	3,45,000	-30,000	2.10	1.20	0.90	-27,000	UF
Strawbery	3,60,000	2,30,000	1,30,000	2.10	1.00	1.10	1,43,000	F
Anchovy	1,89,000	69,000	1,20,000	3.10	1.60	1.50	1,80,000	F
Total							2,54,000	F

Sales Quantity Variance
	Budgeted Unit Sold-A	Actual Quantity- @ Budgeted Mix- B	Diff(A-B)=C	Selling Price $/ Gallon-E	Variable Cost $/ Gallon-F	Contribution Cost $/ Gallon-(E-F)=G	Sales Volume Variance(C*G) $	Unfavorable (UF) / Flavorable (F)
Vanila	2,76,000	3,24,000	-48,000	1.55	0.85	0.70	-33,600	UF
Chocolate	3,45,000	4,05,000	-60,000	2.10	1.20	0.90	-54,000	UF
Strawbery	2,30,000	2,70,000	-40,000	2.10	1.00	1.10	-44,000	UF
Anchovy	69,000	81,000	-12,000	3.10	1.60	1.50	-18,000	UF
Total	9,20,000	10,80,000	-1,60,000				-1,49,600	UF
Actual Quantity- @ Budgeted Mix
Vanila	276000/920000*1080000	3,24,000
Chocolate	345000/920000*1080000	4,05,000
Strawbery	230000/920000*1080000	2,70,000
Anchovy	69000/920000*1080000	81,000

Sales Mix Variance
	Actual Quantity- @ Budgeted Mix- A	Actual Quantity- - B	Diff(A-B)=C	Selling Price $/ Gallon-E	Variable Cost $/ Gallon-F	Contribution Cost $/ Gallon-(E-F)=G	Sales Volume Variance(C*G) $	Unfavorable (UF) / Flavorable (F)
Vanila	3,24,000	2,16,000	1,08,000	1.55	0.85	0.70	75,600	UF
Chocolate	4,05,000	3,15,000	90,000	2.10	1.20	0.90	81,000	UF
Strawbery	2,70,000	3,60,000	-90,000	2.10	1.00	1.10	-99,000	UF
Anchovy	81,000	1,89,000	-1,08,000	3.10	1.60	1.50	-1,62,000	UF
Total	10,80,000	10,80,000	-				-1,04,400	UF