Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Margots Ice Cream operates several stores in a major metropolitan city and its suburbs. Its budget and operating data for the current year follow: Flavor

Margots Ice Cream operates several stores in a major metropolitan city and its suburbs. Its budget and operating data for the current year follow:

Flavor Budgeted Data Actual Operating Results
Gallons Selling Price per Gallon Variable Costs per Gallon Gallons Selling Price per Gallon Variable Costs per Gallon
Vanilla 252,000 $ 1.35 $ 0.65 192,000 $ 1.20 $ 0.55
Chocolate 315,000 1.70 0.80 285,000 1.55 0.70
Strawberry 210,000 1.90 0.80 340,000 2.10 0.85
Anchovy 63,000 2.70 1.20 183,000 3.20 1.40

Required:

1. Compute these variances for the individual flavors and total quantity sold. (Use the Contribution Margin in your calculations and do not round intermediate calculations.)

a. b. c.
Flavor Sales Volume Variance Sales Mix Variance Sales Quantity Variance
Vanilla
Chocolate
Strawberry
Anchovy
Total

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

More Books

Students also viewed these Accounting questions