Dineshbhai Margot's Ice Cream operates several stores in a major metropolitan city and its suburbs. Its budget and operating data for the currentyear follow:FlavorVanillaChocolateStrawberryAnchovyFlavorVanillaGallons348,000435,000290,00087,000ChocolateStrawberryAnchovyTotalBudgeted DataSellingPrice perGallon$ 2.153.302.704.30a.VariableCosts perGallon$ 1.452.401.602.80Sales Volume VarianceActual Operating ResultsSellingPrice perGallon$ 2.003.152.904.80Required:1. Compute these variances for the individual flavors and total quantity sold. (Use the Contribution Margin in your calculations and donot round intermediate calculations.)Gallons288,000405,000420,000207,000Variableb.Sales Mix VarianceCosts perGallon$ 1.352.301.653.00C.Sales Quantity Variance

Variance arises when the actual costs differ from the standard costs. The results are favorable…

Required: 1. Compute these variances for the individual flavors and total quantity sold. (Use the Contribution Margin in your calculations and not round intermediate calculations.) Flavor Vanilla Chocolate Strawberry Anchovy Total a. Sales Volume Variance b. Sales Mix Variance C. Sales Quantity Variance

Required: 1. Compute these variances for the individual flavors and total quantity sold. (Use the Contribution Margin in your calculations and not round intermediate calculations.) Flavor Vanilla Chocolate Strawberry Anchovy Total a. Sales Volume Variance b. Sales Mix Variance C. Sales Quantity Variance

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Bean There Inc. manufactures coffee makers. Selected budget and actual information for 2020 are provided below: Budget Information Actual Information Units sold 1 36,000 Sales in dollars $ 1,272,335 1,363,217 Average selling price per unit $ 50 4 Variable cost per unit $ 30 5 Variable cost in total 2 $ 817,930 Fixed selling and admin $ 302,900 $ 293,200 Operating income 3 6 Calculate on excel: 1. Complete the missing information above (1,2,3,4,5,6) 2. Prepare a flexible budget based on the actual quantity of units sold 3. Prepare a performance report comparing actual results to budgeted results in contribution income statement format. Ensure that the report breaks down variances between actual and budget into price and volume variances for sales, variable costs, and selling and admin expenses including which variances are favorable and which…
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.
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: Actual Operating Results Budgeted Data Flavor Gallons. Selling Price per Gallon Variable Costs per Gallon Selling Price per Variable Costs per Gallons Gallon Gallon Vanilla Chocolate Strawberry Anchovy 324,000 $ 1.95 $ 1.25 264,000 $ 1.80 $ 1.15 405,000 2.90 2.00 375,000 2.75 1.90 270,000 2.50 1.48 400,000 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.) Flavor Vanilla Chocolate Strawberry Anchovy Total Sales Volume Variance Sales Mix Variance Sales Quantity Variance
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Divine Muffins sells its muffins to restaurants and coffee houses for an average selling price of $31 per case. The following information relates to the budget for Divine Muffins for this year (all figures are annual totals unless otherwise noted): Budget information: Budgeted sales in cases. . . . . . 9,300 cases Packaging cost per case. . . . . . $5 Shipping expense per case. . . . $1 Sales commission expense. . . . 3% of sales price Salaries expense. . . . . . . . . . . . $6,800 Office rent. . . . . . . . . . . . . . . . . $3,100 Depreciation. . . . . . . . . . . . . . . $2,900 Insurance expense. . . . . . . . . . $2,300 Office supplies expense. . . . . . $1,300 Actual expenses: Packaging cost. . . . . . . . . . . . . . $50,600 Shipping expense. . . . . . . . . . . . $10,900 Sales commission expense. . . . . $9,423 Salaries expense. . . . . . . . . . . . . $8,400 Office rent. . . . . .…
R A Chad Associates, a merchandising company, prepares its master budget on a quarterly basis.The following data have been assembled to assist in the preparation of the master budget for thefinal quarter.(a) As of September 30, 2005, the company’s balance sheet showed the following accountbalances:Cash $18 000Accounts receivables 96 000Inventory 25 200Building & equipment (net) 428 200Accounts payable $36 600Capital 380 000Retained earnings 150 800$567 400 $567 400(b) Actual sales for September and budgeted sales for the final quarter are as follows:September (actual) $120 000October 140 000November 170 000December 180 000January 100 000(c) Sales are 20% for cash and 80% on credit. All payments on credit sales are collected inthe month following the sale. The accounts receivable at September 30 are as a result ofSeptember credit sales.(a) The company’s gross profit rate is 40% of sales. The cost of goods sold is 60% of sales.(b) Monthly expenses are budgeted as follows: salaries…
Classique Household Furnishings & Appliances is a family-owned furniture store. You are themanagement accountant of the concern and have been given the task of preparing the cash budget for thebusiness for the quarter ending September 30, 2018. Your data collection has yielded the following:i) Extracts from the sales and purchases budgets are as follows: MonthCashSalesSalesOn AccountPurchasesOn AccountMay $50,000 $480,000 $390,000June $65,000 $600,000 $360,000July $43,400 $720,000 $450,000August $52,800 $640,000 $400,000September $56,750 $800,000 $500,000ii) An analysis of the records shows that trade receivables (accounts receivable) for sales on accountare settled according to the following credit pattern, in accordance with the credit terms 5/30, n90:50% in the month of sale35% in the first month following the sale15% in the second month following the saleiii) Accounts payable are settled as follows, in accordance with the credit terms – 4/30, n60:70% in the month in which the…
2) Based on the following information from a commercial company, prepare the following budgets for the months of April and May. • Sales budget and portfolio collection• Shopping budget• Purchase budget and payment to suppliers• VAT budget x pay. The Hermanos Montiel company markets food and groceries and knows that March sales were $120,000,000 and it is projected to increase them by 5% and 8% for the months of April and May respectively. The company's sales policy is to pay 20% cash and finance the balance in 30 days. The merchandise is from national suppliers which offer 85% credit to pay in 30 days. The contribution rate with which the company works is 20% and the inventory policy is to maintain stocks for 18 days. VAT taxes are paid four-monthly and correspond to 19%. The following is the Balance Sheet as of March 31, 2023 Assets box 200.000 accounts receivable 83.520.000 inventories 39.000.000 Total Current Assets 122.720.000 machinery and equipment 18.000.000…
Classique Household Furnishings & Appliances is a family-owned furniture store. You are themanagement accountant of the concern and have been given the task of preparing the cash budget for thebusiness for the quarter ending September 30, 2018. Your data collection has yielded the following:i) Extracts from the sales and purchases budgets are as follows:MonthCashSalesSalesOn AccountPurchasesOn AccountMay $50,000 $480,000 $390,000June $65,000 $600,000 $360,000July $43,400 $720,000 $450,000August $52,800 $640,000 $400,000September $56,750 $800,000 $500,000ii) An analysis of the records shows that trade receivables (accounts receivable) for sales on accountare settled according to the following credit pattern, in accordance with the credit terms 5/30, n90:50% in the month of sale35% in the first month following the sale15% in the second month following the saleiii) Accounts payable are settled as follows, in accordance with the credit terms – 4/30, n60:70% in the month in which the…
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