FUNDAMENTAL'S OF COST ACCOUNTING LL
6th Edition
ISBN: 9781260998993
Author: LANEN
Publisher: MCG
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Textbook Question
Chapter 17, Problem 28E
Sales Mix and Quantity Variances
The restaurant at the Hotel Galaxy offers two choices for breakfast: an all-you-can-eat buffet and an a la carte option, where diners can order from the menu. The buffet option has a budgeted meal price of $35. The a la carte option has a budgeted average price of $24 for a meal. The restaurant manager expects that 40 percent of its diners will order the buffet option. The buffet option has a budgeted variable cost of $15 and the a la carte option averages $10 per meal in budgeted variable cost. The manager estimates that 2,500 people will order a meal in any month. For July, the restaurant served a total of 2,300 meals, including 950 buffet options. Total revenues were $34,200 for buffet meals and $35,100 for the a la carte meals.
Required
- a. Compute the activity variance for the restaurant for July.
- b. Compute the mix and quantity variances for July.
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The restaurant at the Hotel Galaxy offers two choices for breakfast: an all-you-can-eat buffet and an a la carte option, where diners can order from the menu. The buffet option has a budgeted meal price of $52. The a la carte option has a budgeted average price of $41 for a meal. The restaurant manager expects that 40 percent of its diners will order the buffet option. The buffet option has a budgeted variable cost of $32 and the a la carte option averages $25 per meal in budgeted variable cost. The manager estimates that 2,600 people will order a meal in any month.
For July, the restaurant served a total of 2,400 meals, including 940 buffet options. Total revenues were $49,820 for buffet meals and $62,780 for the a la carte meals.
Required:
a. Compute the activity variance for the restaurant for July.
The restaurant at the Hotel Galaxy offers two choices for breakfast: an all-you-can-eat
buffet and an a la carte option, where diners can order from the menu. The buffet
option has a budgeted meal price of $50. The a la carte option has a budgeted
average price of $39 for a meal. The restaurant manager expects that 40 percent of its
diners will order the buffet option. The buffet option has a budgeted variable cost of
$30 and the a la carte option averages $23 per meal in budgeted variable cost. The
manager estimates that 2,000 people will order a meal in any month.
For July, the restaurant served a total of 1,800 meals, including 600 buffet options.
Total revenues were $30,600 for buffet meals and $50,400 for the a la carte meals.
Required:
a. Compute the activity variance for the restaurant for July.
b. Compute the mix and quantity variances for July.
Complete this question by entering your answers in the tabs below.
Required A
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Compute the activity variance for the…
The restaurant at the Hotel Galaxy offers two choices for breakfast: an all-you-can-eat buffet and an a la carte option, where diners can order from the menu. The buffet option has a budgeted meal price of $48. The a la carte option has a budgeted average price of $37 for a meal. The restaurant manager expects that 40 percent of its diners will order the buffet option. The buffet option has a budgeted variable cost of $28 and the a la carte option averages $23 per meal in budgeted variable cost. The manager estimates that 2,000 people will order a meal in any month.
For July, the restaurant served a total of 1,800 meals, including 700 buffet options. Total revenues were $34,300 for buffet meals and $41,800 for the a la carte meals.
Required:
a. Compute the activity variance for the restaurant for July.
b. Compute the mix and quantity variances for July.
Chapter 17 Solutions
FUNDAMENTAL'S OF COST ACCOUNTING LL
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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