Margot's Ice Cream operates several stores in a major metropolitan city and its suburbs. Its budget and operating data for the currentyear follow:FlavorBudgeted DataSellingPrice perGallonActual Operating ResultsGallonsVariableCosts perGallonSellingPrice perVariableCosts perGallonsGallonGallonVanilla246,000$ 1.30$ 0.60186,000$ 1.15$ 0.50Chocolate307,5001.600.70277,5001.450.60StrawberryAnchovy205,0001.850.75335,0002.050.8061,5002.601.10181,5003.101.30Required:1. Compute these variances for the individual flavors and total quantity sold. (Use the Contribution Margin in your calculations and donot round intermediate calculations.)FlavorVanillaChocolateStrawberryAnchovyTotala.b.Sales Volume VarianceSales Mix VarianceSales Quantity Variance

Sales volume variances occur due to the difference between the actual quantity of units sold and the…

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: Budgeted Data Actual Operating Results Flavor Gallons Selling Price per Gallon Variable Costs per Gallon Selling Price per Variable Costs per Gallons Gallon Gallon Vanilla 246,000 $ 1.30 $ 0.60 186,000 $ 1.15 $ 0.50 Chocolate Strawberry Anchovy 307,500 1.60 0.70 277,500 1.45 0.60 205,000 1.85 0.75 335,000 2.05 0.80 61,500 2.60 1.10 181,500 3.10 1.30 Required: 1. Compute these variances for the individual flavors and total quantity sold. (Use the Contribution Margin in your calculations and do not round intermediate calculations.)

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: Budgeted Data Actual Operating Results Flavor Gallons Selling Price per Gallon Variable Costs per Gallon Selling Price per Variable Costs per Gallons Gallon Gallon Vanilla 246,000 $ 1.30 $ 0.60 186,000 $ 1.15 $ 0.50 Chocolate Strawberry Anchovy 307,500 1.60 0.70 277,500 1.45 0.60 205,000 1.85 0.75 335,000 2.05 0.80 61,500 2.60 1.10 181,500 3.10 1.30 Required: 1. Compute these variances for the individual flavors and total quantity sold. (Use the Contribution Margin in your calculations and do not round intermediate calculations.)

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter4: Activity-based Costing

Section: Chapter Questions

Problem 9E: Nozama.com Inc. sells consumer electronics over the Internet. For the next period, the budgeted cost...

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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 306,000 $ 1.80 $ 1.10 246,000 $ 1.65 $ 1.00 Chocolate 382,500 2.60 1.70 352,500 2.45 1.60 Strawberry 255,000 2.35 1.25 385,000 2.55 1.30 Anchovy 76,500 3.60 2.10 196,500 4.10 2.30 Required: 1. Compute these variances (sales volume variance, sales mix variance, sales quantity variance) for the individual flavors and total quantity sold. (Use the Contribution Margin in your calculations and do not round intermediate calculations.)
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: Budgeted Data Selling Price per Actual Operating Results Selling Price per Variable Variable Costs per Costs per Flavor Gallons Gallon Gallon Gallons Gallon Gallon $ 1.35 $ 0.65 $ 1.20 $ 0.55 252,000 315,000 210,000 63,000 192,000 285,000 340,000 183,000 Vanilla Chocolate 1.70 0.80 1.55 0.70 Strawberry Anchovy 1.90 0.80 2.10 0.85 2.70 1.20 3.20 1.40 Required: 1. Compute these variances for the individual flavors and total quantity sold. (Use the Contribution Margin in your calculations and do not round intermediate calculations.) a. b. C. Flavor Sales Volume Variance Sales Mix Variance Sales Quantity Variance Vanilla Chocolate Strawberry Anchovy Total
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 Gallons Budgeted Data Selling Price per Gallon Actual Operating Results Vanilla 324,000 $ 1.95 Variable Costs per Gallon $ 1.25 Selling Price per Variable Costs per Gallons Gallon Gallon 264,000 $ 1.80 $ 1.15 Chocolate 405,000 2.90 2.00 375,000 2.75 1.90 Strawberry Anchovy 270,000 2.50 1.40 400,000 2.70 1.45 81,000 3.90 2.40 201,000 4.40 2.60 Required: 1. Compute these variances for the individual flavors and total quantity sold. (Use the Contribution Margin in your calculations and do not round intermediate calculations.) a. b. C. Flavor Sales Volume Variance Sales Mix Variance Sales Quantity Variance Vanilla Chocolate Strawberry Unfavorable Unfavorable Favorable Unfavorable Favorable Unfavorable Favorable Favorable Favorable Anchovy Favorable Favorable Favorable Total Favorable Favorable Favorable
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: Budgeted Data Actual Operating Results Flavor Vanilla Chocolate Strawberry Anchovy Required: Gallons Selling Price per Gallon Variable Costs per Selling Price per Variable Costs per Gallon Gallons Gallon Gallon 288,000 $ 1.65 $ 0.95 228,000 $ 1.50 $ 0.85 360,000 2.30 1.40 330,000 2.15 1.30 240,000 2.20 1.10 72,000 3.30 1.80 370,000 192,000 2.40 1.15 3.88 2.00 1. Compute these variances for the individual flavors and total quantity sold. (Use the Contribution Margin in your calculations and do not round intermediate calculations.) Flavor Vanilla Sales Volume Variance Sales Mix Variance Sales Quantity Variance Chocolate Strawberry Anchovy Total
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: Budgeted Data Flavor Gallons Selling Price per Gallon Vanilla 324,000 $ 1.95 Variable Costs per Gallon $ 1.25 Actual Operating Results Selling Variable Price per Costs per Gallons Gallon Gallon 264,000 $ 1.80 $ 1.15 Chocolate 405,000 2.90 2.00 375,000 2.75 1.90 Strawberry Anchovy 270,000 2.50 81,000 3.90 1.40 2.40 400,000 201,000 2.70 1.45 4.40 2.60 Required: 1. Compute these variances for the individual flavors and total quantity sold. (Use the Contribution Margin in your calculations and do not round intermediate calculations.) Answer is complete but not entirely correct. b. Flavor Sales Volume Variance Sales Mix Variance Sales Quantity Variance Vanilla $ Chocolate Strawberry Anchovy Total $ 589,000 117,000 Unfavorable 87,000 Unfavorable 325,000 Favorable 468,000 Favorable Favorable $ 210,600 Unfavorable 261,000 Unfavorable 225,000…
Nozama.com Inc. sells consumer electronics over the Internet. For the next period, the budgeted cost of the sales order processing activity is 250,000 and 50,000 sales orders are estimated to be processed. a. Determine the activity rate of the sales order processing activity. b. Determine the amount of sales order processing cost associated with 30,000 sales orders.
Use the following information for Exercises 9-50 and 9-51: Assume that Stillwater Designs produces two automotive subwoofers: S12L7 and S12L5. The S12L7 sells for 475, and the S12L5 sells for 300. Projected sales (number of speakers) for the coming 5 quarters are as follows: The vice president of sales believes that the projected sales are realistic and can be achieved by the company. Exercise 9-50 Sales Budget Refer to the information regarding Stillwater Designs above. Required: 1. Prepare a sales budget for each quarter of 20X1 and for the year in total. Show sales by product and in total for each time period. 2. CONCEPTUAL CONNECTION How will Stillwater Designs use this sales budget?
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 Gallons Budgeted Data Selling Price per Gallon Actual Operating Results Vanilla 318,000 $ 1.90 Variable Costs per Gallon $ 1.20 Gallons Selling Price per Gallon Variable Costs per Gallon 258,000 $ 1.75 Chocolate 397,500 2.80 1.90 367,500 2.65 $ 1.10 1.80 Strawberry Anchovy 265,000 2.45 79,500 3.80 1.35 2.30 395,000 2.65 1.40 199,500 4.30 2.50 Required: 1. Compute these variances for the individual flavors and total quantity sold. (Use the Contribution Margin in your calculations and do not round intermediate calculations.) Flavor Vanilla Chocolate Strawberry Anchovy Total a. b. Sales Volume Variance Sales Mix Variance Sales Quantity Variance Unfavorable Unfavorable Favorable Favorable
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: Budgeted Data Selling Price per Actual Operating Results Selling Price per Variable Variable Costs per Costs per Flavor Gallons Gallon Gallon Gallons Gallon Gallon Vanilla 354,000 442,500 295,000 88,500 $2.20 $1.50 294,000 412,500 425,000 208,500 $2.05 $ 1.40 Chocolate 3.40 2.50 3.25 2.40 Strawberry Anchovy 2.75 1.65 2.95 1.70 4.40 2.90 4.90 3.10 Required: 1. Compute these variances for the individual flavors and total quantity sold. (Use the Contribution Margin in your calculations and do not round intermediate calculations.) a. b. C. Flavor Sales Volume Variance Sales Mix Variance Sales Quantity Variance Vanilla Chocolate Strawberry Anchovy Total Prey Noxt
We discuss how to prepare the different component budgets of theoperating budget, including the sales, production, direct materials,direct labor, manufacturing overhead, cost of goods sold, andselling and administrative expense budgets. We also discuss howto use information from all of these operating budgets to prepare abudgeted income statement. Knowledge Check 05WellWheats, Inc. produces breakfast cereal and sells each box, or unit, for $7.The company is projecting sales of 1,000 units for the month of March. The totalcost of producing one unit includes $2 for direct materials, $1 for direct labor,and $0.50 for manufacturing overhead.Calculate the cost of goods sold for the month of March.
Integrated Excel: Preparing a Contribution Format Income Statement Using the High-Low Method Jay Corporation has provided data from a two-year period to aid in planning. The Controller has asked you to prepare a contribution format income statement. Budgeted information for Quarter 1 of 2024: Sales in units Sales price per unit After analyzing expenses, the company has determined the following cost patterns. Cost of Goods Sold (per unit) Sales Commissions (per dollar of sales). Administrative Salaries (per quarter) Rent Expense (per quarter) Depreciation Expense (per quarter) Shipping has been determined to be a mixed cost with the following total costs and units: 2022 Quarter 1 Quarter 2 Quarter 3 Quarter 4 2023 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total Cost $ 67,000 $ 94,000 $ 89,800 $ 92,600 $ 72,500 $80,000 $ 84,000 $ 100,000 17,000 $ 48.00 Units 12,500 21,000 13,800 20,000 13,700 14,000 14,300 22,500 $29.00 9.50€ $ 45,000 $ 27,000 $ 36,000 Required: Use the data to answer the…
Show Me How Flexible Budget for Selling and Administrative Expenses for a Service Company Morningside Technologies Inc. uses flexible budgets that are based on the following data: Sales commissions Advertising expense Miscellaneous administrative expense Office salaries expense Customer support expenses Research and development expense ebook Total sales Variable cost Prepare a flexible selling and administrative expenses budget for April for sales volumes of $85,000, $105,000, and $130,000. Enter all amounts as positive numbers. Morningside Technologies Inc. Flexible Selling and Administrative Expenses Budget For the Month Ending April 30 Sales commissions Advertising expense Miscellaneous administrative expense Customer support expenses Total variable cost 8% of sales 18% of sales Fixed cost: Miscellaneous administrative expense Office salanes expense $1,350 per month plus 3% of sales $13,000 per month $1,900 plus 4% of sales 4,250 per month $85,000 $105,000 $130,000 100