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. Chewy 4,000 bars $499 380 $110 Chunky 4,000 bars $800 Choco-Lite 8,800 bars $1,600 1360 240 Total 16,000 bars $2.590 2,400 $ 490 560 $140 Budget Sales-units (in thousands) Sales-dollars (in thousands) Variable costs Contribution margin Manufacturing fixed cost Product margin Marketing and administrative costs (allt Operating profit 110 1 33 $74 367 Chewy 100 bars Choco-lite 3,280 bars $1,600 Total 15,000 bars $2,596 Chunky 4.000 bars $888 688 $112 5196 $ 279 Actual Sales-units (in thousands) Sales-dollars (in thousands) Variable costs Contribution margin Manufacturing fixed cost Product margin Marketing and administrative costs (all fixed) $ 221 $ 335 $ 73 5221 $ Product margin Marketing and administrative costs (all fixed) Operating profit 335 42 293 $ ustry volume for July was 84.060 million Industry volume was estimated at 93.4 million bars for budgeting purposes. Actua bars. Required: a. Determine the sales price and sales activity variances. b. Break down the sales activity variance into the parts caused by industry volume and market share. Complete this question by entering your answers in the tabs below. Required A Required B 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) b. Break down the sales activity variance into the parts caused by industry volume and market share. Complete this question by entering your answers in the tabs below. Required A Required B 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 Sales activity variance Required B > U. DICO UUWI e Sales activity variance into the parts caused by industry volume and market share. Complete this question by entering your answers in the tabs below. Required A Required B Break down the sales activity variance into the parts caused by industry volume and market share. (Do not round intermediate calculations. Enter your answers in thousands rounded to 1 decimal place. 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.) Market share variance Industry variance Required A 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. Chewy 4,000 bars $499 380 $110 Chunky 4,000 bars $800 Choco-Lite 8,800 bars $1,600 1360 240 Total 16,000 bars $2.590 2,400 $ 490 560 $140 Budget Sales-units (in thousands) Sales-dollars (in thousands) Variable costs Contribution margin Manufacturing fixed cost Product margin Marketing and administrative costs (allt Operating profit 110 1 33 $74 367 Chewy 100 bars Choco-lite 3,280 bars $1,600 Total 15,000 bars $2,596 Chunky 4.000 bars $888 688 $112 5196 $ 279 Actual Sales-units (in thousands) Sales-dollars (in thousands) Variable costs Contribution margin Manufacturing fixed cost Product margin Marketing and administrative costs (all fixed) $ 221 $ 335 $ 73 5221 $ Product margin Marketing and administrative costs (all fixed) Operating profit 335 42 293 $ ustry volume for July was 84.060 million Industry volume was estimated at 93.4 million bars for budgeting purposes. Actua bars. Required: a. Determine the sales price and sales activity variances. b. Break down the sales activity variance into the parts caused by industry volume and market share. Complete this question by entering your answers in the tabs below. Required A Required B 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) b. Break down the sales activity variance into the parts caused by industry volume and market share. Complete this question by entering your answers in the tabs below. Required A Required B 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 Sales activity variance Required B > U. DICO UUWI e Sales activity variance into the parts caused by industry volume and market share. Complete this question by entering your answers in the tabs below. Required A Required B Break down the sales activity variance into the parts caused by industry volume and market share. (Do not round intermediate calculations. Enter your answers in thousands rounded to 1 decimal place. 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.) Market share variance Industry variance Required A
