Question 1 (42 marks) Aunty Jane Inc. operates a chain of cupcake stores. Budgeted and actual...
Question 1 (42 marks)
Aunty Jane Inc. operates a chain of cupcake stores. Budgeted and actual operating data for its three Ontario stores for the previous month are as follows:
Budgeted Data:
|
Selling Price per kilogram |
Variable Cost per Unit per kilogram |
Sales volume in kilograms |
Market Volume in kilograms |
|
|
Chocolate |
$4.85 |
$3.00 |
46,000 |
100,000 |
|
Vanilla |
5.10 |
3.20 |
30,000 |
120,000 |
|
Strawberry |
5.85 |
3.40 |
14,000 |
88,000 |
|
Red Velvet |
6.10 |
3.50 |
6,000 |
65,000 |
|
Lemon |
6.50 |
3.90 |
16,000 |
80,000 |
Actual Data:
|
Selling Price per kilogram |
Variable Cost per Unit per kilogram |
Sales volume in kilograms |
Market Volume in kilograms |
|
|
Chocolate |
$4.90 |
$3.10 |
58,000 |
120,000 |
|
Vanilla |
5.30 |
3.40 |
18,000 |
140,000 |
|
Strawberry |
5.80 |
2.80 |
9,600 |
80,000 |
|
Red Velvet |
6.00 |
3.50 |
13,200 |
70,000 |
|
Lemon |
7.00 |
4.20 |
23,400 |
75,000 |
Required
- Calculate the sales-price variance for chocolate, strawberry, and lemon.
- Calculate the sales-volume variance for vanilla, strawberry, and red velvet.
- Calculate the sales-quantity variance for chocolate, vanilla, and strawberry.
- Calculate the sales-mix variance for strawberry, red velvet, and lemon.
- Calculate the market-volume variance for vanilla, strawberry, and red velvet.
- Calculate the market-share variance for chocolate, strawberry, and lemon.
Homework Answers
| 1 | Sales Price variance | ||||||||||
| Particulars | (AP | - | SP) | * | AQ | Varaince | |||||
| Chocolate | 4.9 | - | 4.85 | * | 58000 | 2900 | |||||
| Vanilla | 5.3 | 5.1 | * | 18000 | 3600 | ||||||
| Strawberry | 5.8 | - | 5.85 | * | 9600 | -480 | |||||
| Red velvet | 6 | 6.1 | * | 13200 | -1320 | ||||||
| Lemon | 7 | - | 6.5 | * | 23400 | 11700 | |||||
| 2 | Sales volume variance | ||||||||||
| Particulars | (AQ | - | SQ) | * | SP | Variance | |||||
| Chocolate | 58000 | 46000 | * | 4.85 | 58200 | ||||||
| Vanilla | 18000 | - | 30000 | * | 5.1 | -61200 | |||||
| Strawberry | 9600 | - | 14000 | * | 5.85 | -25740 | |||||
| Red velvet | 13200 | - | 6000 | * | 6.1 | 43920 | |||||
| Lemon | 23400 | 16000 | * | 6.5 | |||||||
| 122200 | 112000 | ||||||||||
| 3 & 4 | Sales quanity variance & Mix variance | ||||||||||
| Particulars | SQ | Percentage | AQ | AQ should be | Difference | Budget price | Variance | Budgeted volume | Difference | Variance | |
| Chocolate | 46,000 | 41% | 58,000 | 50,189 | 7,811 | 4.85 | 37,882 | 46000 | 4,189 | 20,318.04 | |
| Vanilla | 30,000 | 27% | 18,000 | 32,732 | -14,732 | 5.1 | -75,134 | 30000 | 2,732 | 13,933.93 | |
| Strawberry | 14,000 | 13% | 9,600 | 15,275 | -5,675 | 5.85 | -33,199 | 14000 | 1,275 | 7,458.75 | |
| Red velvet | 6,000 | 5% | 13,200 | 6,546 | 6,654 | 6.1 | 40,587 | 6000 | 546 | 3,333.21 | |
| Lemon | 16,000 | 14% | 23,400 | 17,457 | 5,943 | 6.5 | 38,629 | 16000 | 1,457 | 9,471.43 | |
| 112,000 | 100% | 122,200 | 122,200 | 0 | 28 | 8,765 | |||||
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Question 1 (42 marks)
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