Problem 17-31 Sales Mix and Quantity Variances (LO 17-3)

Matties Vineyards is a producer and wholesaler of three varieties of white wine. Sales data for November are given below:

	Sauvignon Blanc		Chardonnay				Riesling		Total
Budgeted selling price	$	7.45		$	8.20		$	7.20
Budgeted variable cost	$	5.30		$	6.20		$	5.20
Budgeted selling quantity		10,800			4,050			12,150	27,000
Actual selling price	$	7.20		$	8.35		$	6.85
Actual variable cost	$	5.20		$	6.10		$	4.85
Actual selling quantity		9,280			6,960			12,760	29,000

Required:
(a)	Compute the sales price variance for all three wines. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)

(b)	Compute the activity variance for Matties Vineyards for the year. (Indicate the effect of the variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Do not round your intermediate calculations. Round your answer to 2 decimal places.)

(c)	Compute the mix and quantity variances for Matties Vineyards for the year. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Do not round your intermediate calculations. Round your answers to 2 decimal places.)