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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 as follows.

Sauvignon Blanc Chardonnay Riesling Total
Budgeted selling price $ 9.40 $ 10.60 $ 7.50
Budgeted variable cost $ 6.60 $ 7.80 $ 5.50
Budgeted selling quantity 19,900 7,200 11,900 39,000
Actual selling price $ 9.30 $ 9.65 $ 7.45
Actual variable cost $ 6.35 $ 8.00 $ 5.15
Actual selling quantity 21,500 7,400 11,800 40,700

Required:

a. Compute the sales price variance for all three wines.

b. Compute the activity variance for Lake Cellars for August.

c. Compute the mix and quantity variances for Lake Cellars for August.

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