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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) 2,000 bars 2,000 bars 4,000 bars 8,000 bars Sales-dollars (in thousands) $ 200 $ 400 $ 600 $ 1,200 Variable costs 140 320 460 920 Contribution margin $ 60 $ 80 $ 140 $ 280 Manufacturing fixed cost 40 40 60 140 Product margin $ 20 $ 40 $ 80 $ 140 Marketing and administrative costs (all fixed) 50 Operating profit $ 90 Actual Chewy Chunky Choco-Lite Total Sales-units (in thousands) 1,600 bars 2,000 bars 4,200 bars 7,800 bars Sales-dollars (in thousands) $ 162 $ 400 $ 600 $ 1,162 Variable costs 112 322 464 898 Contribution margin $ 50 $ 78 $ 136 $ 264 Manufacturing fixed cost 42 44 63 149 Product margin $ 8 $ 34 $ 73 $ 115 Marketing and administrative costs (all fixed) 55 Operating profit $ 60 Industry volume was estimated at 80 million bars for budgeting purposes. Actual industry volume for July was 76 million bars. Required: Break down the total activity variance into sales mix and quantity parts. (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 mix variance____

Quantity variance____

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