Variance analysis, multiple products. Debbie’s Delight Inc. operates a chain of cookie (203 stores. Budgeted and actual operating data for its three Calgary stores for August 2010 are as 1. Chocolate chip follows:

Debbie’s Delight focuses on contribution margin in its variance analysis.

REQUIRED ‘
1. Compute the total sales-volume variance for August 2010.
2. Compute the total sales-mix variance for August 2010.
3. Compute the total sales-quantity variance for August 2010.
4. Comment on your results in requirements 1, 2, and 3.LO1

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per kg Selling Price per kg Budget for August 2010 Variable Cost Contribution Margin per kg Sales Volume in kg Chocolate chip $4.50 $2.50 $2.00 45,000 Oatmeal raisin 5.00 2.70 2.30 25,000 Coconut 5.50 2.90 2.60 10,000 White chocolate 6.00 3.00 3.00 5,000 Macadamia nut 6.50 3.40 3.10 15,000 100,000 Actual for August 2010 Selling Price Variable Cost Contribution Sales Volume per kg per kg Margin per kg in kg Chocolate chip $4.50 $2.60 $1.90 57,600 Oatmeal raisin 5.20 2.90 2.30 18,000 Coconut 5.50 2.80 2.70 9,600 White chocolate 6.00 3.40 2.60 13,200 Macadamia nut 7.00 4.00 3.00 21,600 120,000