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. Sauvignon Blanc Budgeted selling price Budgeted variable cost Budgeted selling quantity Actual selling price Actual variable cost Actual selling quantity $ $ $ $ 9.40 6.60 19,900 9.30 6.35 21,500 Chardonnay 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. Riesling Total $ $ $ $ 10.60 7.80 7,200 9.65 8.00 7,400 $7.50 $5.50 11,900 $7.45 $ 5.15 11,800 39,000 40,700
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. Sauvignon Blanc Budgeted selling price Budgeted variable cost Budgeted selling quantity Actual selling price Actual variable cost Actual selling quantity $ $ $ $ 9.40 6.60 19,900 9.30 6.35 21,500 Chardonnay 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. Riesling Total $ $ $ $ 10.60 7.80 7,200 9.65 8.00 7,400 $7.50 $5.50 11,900 $7.45 $ 5.15 11,800 39,000 40,700
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text: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.
Sauvignon Blanc
Budgeted selling price
Budgeted variable cost
Budgeted selling quantity
Actual selling price
Actual variable cost
Actual selling quantity
$
$
$
$
9.40
6.60
19,900
9.30
6.35
21,500
Chardonnay
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.
Riesling Total
10.60
$
$
$
$
7.80
7,200
9.65
8.00
7,400
$ 7.50
$ 5.50
11,900
$ 7.45
$ 5.15
11,800
39,000
40,700
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