Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Lake Cellars produces and sells white wine. The following data concern the three varietals of white wine the company currently offers. Sales data for August

Lake Cellars produces and sells white wine. The following data concern the three varietals of white wine the company currently offers. Sales data for August are given below:

Sauvignon Blanc Chardonnay Riesling Total
Budgeted selling price $ 9.80 $ 11.30 $ 7.90
Budgeted variable cost $ 7.20 $ 8.50 $ 5.10
Budgeted selling quantity 19,000 7,900 11,100 38,000
Actual selling price $ 10.00 $ 9.15 $ 8.25
Actual variable cost $ 6.65 $ 8.55 $ 6.00
Actual selling quantity 20,100 8,000 11,000 39,100

Required:

a. Compute the sales price variance for all three wines. (Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.)

b. Compute the activity variance for Lake Cellars for August. (Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.)

c. Compute the mix and quantity variances for Lake Cellars for August. (Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.)

image text in transcribed

Lake Cellars produces and sells white wine. The following data concern the three varietals of white wine the company currently offers. Sales data for August are given below: $ 7.20 800 11,000 39 100 Required: a. Compute the sales price variance for all three wines. (Indicate the effect of each variance by selecting "F for favorable, or "U" for unfavorable. If there is no effect, do not select either option.) b. Compute the activity variance for Lake Cellars for August. (Do not round intermediate calculations. Indicate the effect of each variance by selecting F for favorable, or "U" for unfavorable. If there is no effect, do not select either option.) c. Compute the mix and quantity variances for Lake Cellars for August. (Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

University Auditing In The Digital Era Challenges And Lessons For Higher Education Professionals And CAEs

Authors: Sezer Bozkus Kahyaoglu; Erman Coskun

1st Edition

0367553228, 9780367553227

More Books

Students also viewed these Accounting questions

Question

Describe the characteristics of highly repetitive DNA sequences.

Answered: 1 week ago

Question

The Nature of Nonverbal Communication

Answered: 1 week ago

Question

Functions of Nonverbal Communication

Answered: 1 week ago

Question

Nonverbal Communication Codes

Answered: 1 week ago