Bakery Extraordinaire sells several types of muffins and scones and also sells carrot bread loaves. Planned prices and sales quantities for February are shown here:

The owner would like to know how the price changes and volume changes each contributed to the \(\$ 2,735\) difference between planned and actual sales revenues.
Required

a. Compute the sales mix variance for each product line and explain the meaning of each variance you computed.

b. Compute the sales quantity variance for each product line and explain the meaning of each variance you computed.

c. Compute the sales price variance for each product line and explain the meaning of each variance you computed.

Transcribed Image Text:

Planned Sales for February CARROT MUFFINS SCONES BREAD TOTALS Unit price $1.35 $1.75 $2.75 Unit sales 1,600 3,400 1,000 6,000 Total $2,160 $5,950 $2,750 $10,860 The actual results for February are shown here: Actual Sales for February MUFFINS SCONES CARROT BREAD TOTALS Unit price $1.55 $1.60 $3.25 Unit sales 1,400 4,500 1,300 7,200 Total $2,170 $7,200 $4,225 $13,595