Peninsula Candy Company makes three types of candy bars Chewy, Chunky, and Choco Lite (Lite) Sales volume for the annual budget is determined by estimating the total market volume for candy bars and then applying the company's prior year market share, adjusted for planned changes due to company programs for the coming year Volume is apportioned among the three bars based on the prior year's product mix, again adjusted for planned changes for the coming year The following are the company budget and the results of operations for July Budget Chewy Chunky Choco Lite Total Sales units (in thousands) 3,000 bars 3,000 bars 6,000 bars 12,000 bars Sales dollars (in thousands) $ 270 $ 600 $ 960 $ 1,830 Variable costs 195 495 780 1,470 Contribution margin $ 75 $ 105 $ 180 $ 360 Manufacturing fixed cost 37 38 59 134 Product margin $ 38 $ 67 $ 121 $ 226 Marketing and administrative costs (all fixed) 57 Operating profit $ 169 Actual Chewy Chunky Choco Lite Total Sales units (in thousands) 2,400 bars 3,000 bars 6,100 bars 11,500 bars Sales dollars (in thousands) $ 144 $ 600 $ 960 $ 1,704 Variable costs 72 525 759 1,356 Contribution margin $ 72 $ 75 $ 201 $ 348 Manufacturing fixed cost 40 36 56 132 Product margin $ 32 $ 39 $ 145 $ 216 Marketing and administrative costs (all fixed) 36 Operating profit $ 180 Industry volume was estimated at 91 1 million bars for budgeting purposes Actual industry volume for July was 81 990 million bars Required a Determine the sales price and sales activity variances Determine the sales price and sales activity variances (Do not round intermediate calculations Enter your answers in thousands 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 ) Sales price variance $88 U Sales activity variance U

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Peninsula Candy Company makes three types of candy bars: Chewy, Chunky, and Choco-Lite (Lite). Sales volume for the annual budget is determined by estimating the

Peninsula Candy Company makes three types of candy bars: Chewy, Chunky, and Choco-Lite (Lite). Sales volume for the annual budget is determined by estimating the total market volume for candy bars and then applying the company's prior year market share, adjusted for planned changes due to company programs for the coming year. Volume is apportioned among the three bars based on the prior year's product mix, again adjusted for planned changes for the coming year.

The following are the company budget and the results of operations for July.

Budget	Chewy				Chunky			Choco-Lite			Total
Sales-units (in thousands)	3,000 bars				3,000 bars			6,000 bars			12,000 bars
Sales-dollars (in thousands)		$	270			$	600		$	960		$	1,830
Variable costs			195				495			780			1,470
Contribution margin		$	75			$	105		$	180		$	360
Manufacturing fixed cost			37				38			59			134
Product margin		$	38			$	67		$	121		$	226
Marketing and administrative costs (all fixed)													57
Operating profit												$	169

Actual	Chewy			Chunky				Choco-Lite			Total
Sales-units (in thousands)	2,400 bars				3,000 bars			6,100 bars			11,500 bars
Sales-dollars (in thousands)		$	144			$	600		$	960		$	1,704
Variable costs			72				525			759			1,356
Contribution margin		$	72			$	75		$	201		$	348
Manufacturing fixed cost			40				36			56			132
Product margin		$	32			$	39		$	145		$	216
Marketing and administrative costs (all fixed)													36
Operating profit												$	180

Industry volume was estimated at 91.1 million bars for budgeting purposes. Actual industry volume for July was 81.990 million bars.

Required:

a. Determine the sales price and sales activity variances.

Determine the sales price and sales activity variances. (Do not round intermediate calculations. Enter your answers in thousands. 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.)