Fundamentals Of Cost Accounting (6th Edition)
6th Edition
ISBN: 9781259969478
Author: WILLIAM LANEN, Shannon Anderson, Michael Maher
Publisher: McGraw Hill Education
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Chapter 17, Problem 44P
Sales Mix and Quantity Variances
Lake Cellars produces and sells white wine. The following data concern the three varietals of white wine the company currently offers. Sales data for August are given below:
Required
- a. Compute the sales price variance for all three wines.
- b. Compute the activity variance for Lake Cellars for August.
- c. Compute the mix and quantity variances for Lake Cellars for August.
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Lake Cellars produces and sells white wine. The following data concern the three varietals of white wine the company currently offers.
Sales data for August are given as follows.
Budgeted selling price
Budgeted variable cost
Budgeted selling quantity
Actual selling price
Actual variable cost
Actual selling quantity
Req A
Req B and C
Sauvignon
Blanc
$ 11.10
$ 8.40
20,100
$11.35
$ 8.10
21,900
b. Activity variance
c. Mix variance
Chardonnay
$12.10
$10.20
Required:
a. Compute the sales price variance for all three wines.
b. Compute the activity variance for Lake Cellars for August.
c. Compute the mix and quantity variances for Lake Cellars for August.
Quantity variance
7,500
$8.15
$9.85
7,600
Complete this question by entering your answers in the tabs below.
Riesling Total
$ 9.00
$ 7.50
12,300
$ 9.40
$ 7.25
12,100
39,900
b. Compute the activity variance for Lake Cellars for August.
c. Compute the mix and quantity variances for Lake Cellars for August.
(Do not round intermediate…
Archoid's Flowering Plants provides the following information for the month of May:
Actual
Sales in units
Contribution margin per unit
For May, the company will report a(n).
A. unfavorable sales - mix variance
B. unfavorable market-share variance
C. favorable market-share variance
D. favorable sales-mix variance
Tulips
4,420
$15
Geraniums
Tulips
Budget
4,200
$19
(Round any intermediary calculations two decimal places.)
4,950
$10
Geraniums
3,300
$22
Chapter 17 Solutions
Fundamentals Of Cost Accounting (6th Edition)
Ch. 17 - What complication arises in variance analysis when...Ch. 17 - Variance analysis can be useful in a manufacturing...Ch. 17 - How would you recommend accounting for variances...Ch. 17 - What does a manager learn by computing an industry...Ch. 17 - Why is there no efficiency variance for revenues?Ch. 17 - For what decisions would a manager want to know...Ch. 17 - If the sales activity or materials efficiency...Ch. 17 - Prob. 8RQCh. 17 - Prob. 9RQCh. 17 - What is the advantage of recognizing materials...
Ch. 17 - How could a professional sports firm use the mix...Ch. 17 - Prob. 12CADQCh. 17 - How could a hospital firm use the mix variance to...Ch. 17 - Prob. 14CADQCh. 17 - There is no reason to investigate favorable...Ch. 17 - Prob. 16CADQCh. 17 - Consider a firm in the sharing economy, such as...Ch. 17 - Prob. 18ECh. 17 - Prob. 19ECh. 17 - Prob. 20ECh. 17 - Variable Cost Variances: Materials Purchased and...Ch. 17 - Prob. 22ECh. 17 - Industry Volume and Market Share Variances DB Ice...Ch. 17 - Olive Tree Products sold 72,000 units during the...Ch. 17 - Prob. 25ECh. 17 - Sales Mix and Quantity Variances A-Zone Media...Ch. 17 - Prob. 27ECh. 17 - Sales Mix and Quantity Variances The restaurant at...Ch. 17 - Sales Mix and Quantity Variances Chow-4-Hounds...Ch. 17 - Materials Mix and Yield Variances Stacy, Inc.,...Ch. 17 - Materials Mix and Yield Variances Johns...Ch. 17 - Labor Mix and Yield Variances Matts Eat N Run has...Ch. 17 - Flexible Budgeting, Service Organization KB is a...Ch. 17 - Prob. 34ECh. 17 - Prob. 35ECh. 17 - Sales Price and Activity Variances EZ-Tax is a tax...Ch. 17 - Write a memo to the senior manager of EZ-Tax...Ch. 17 - Variable Cost Variances The standard direct labor...Ch. 17 - Refer to the information in Exercise...Ch. 17 - Prob. 40PCh. 17 - Variable Cost Variances: Materials Purchased and...Ch. 17 - Industry Volume and Market Share Variances:...Ch. 17 - Industry Volume and Market Share: Missing Data The...Ch. 17 - Sales Mix and Quantity Variances Lake Cellars...Ch. 17 - Analyze Performance for a Restaurant Dougs Diner...Ch. 17 - Nonmanufacturing Cost Variances FSBCU is a...Ch. 17 - Performance Evaluation in Service Industries Bay...Ch. 17 - Refer to the information in Problem...Ch. 17 - Prob. 49PCh. 17 - Refer to the data for the Peninsula Candy Company...Ch. 17 - Materials Mix and Yield Variances Plano Products...Ch. 17 - Pinnuck Products makes a liquid solvent using two...Ch. 17 - Labor Mix and Yield Variances Matthews Bros, is a...Ch. 17 - Refer to the information in Problem...Ch. 17 - Derive Amounts for Profit Variance Analysis...Ch. 17 - Flexible Budget Oak Hill Township operates a motor...
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