Springwater Brewery has two main products: premium and regular ale. Its operating results and master budget for 2019 (000s omitted) follow:

	Operating Results of 2019												Master Budget for 2019
	Premium				Regular				Total				Premium				Regular				Total
Barrels		210				630				840				280				420				700
Sales	$	35,700			$	75,600			$	111,300			$	44,800			$	54,600			$	99,400
Variable expenses		18,900				50,400				69,300				25,200				33,600				58,800
Contribution margin	$	16,800			$	25,200			$	42,000			$	19,600			$	21,000			$	40,600
Fixed expenses		10,000				9,000				19,000				10,000				9,000				19,000
Operating income	$	6,800			$	16,200			$	23,000			$	9,600			$	12,000			$	21,600

Pam Kuder, CEO, expected the total industry sales to be 1,400,000 barrels during the period. After the year, Mark Goldfeder, the controller, reported that the total sales for the industry were 1,500,000 barrels.

Required:

Calculate the following:

1. Selling price variances for the period for each product and for the firm.

2. Sales volume variances for the period for each product and for the firm.

3. Sales quantity variances for each product and the firm.

4. Sales mix variances for the period for each product and for the firm.

5. The sum of the sales quantity variance and sales mix variance. Also, verify that this total equals the sales volume variance.

6. Market size variance for the period.

7. Market share variance for the period.

8. The sum of the market size variance and market share variance. Also, verify that this total equals the sales quantity variance.

(Enter your answers in thousands of dollars.) indicate if it's favorable, unfavorable or none!

Springwater Brewery has two main products: premium and regular ale. Its operating results and master budget for 2019 (000s omitted) follow: Barrels Sales Variable expenses Contribution margin Fixed expenses Operating income Operating Results of 2019 Premium Regular Total 210 630 840 $35,700 $75,600 $111,300 18,900 50,400 69,300 $16,800 $25,200 $ 42,000 10,000 9,000 19,000 $ 6,800 $16,200 $ 23,000 Master Budget for 2019 Premium Regular Total 280 420 700 $44,800 $54,600 $99,400 25, 200 33,600 58,800 $19,600 $21,000 $40,600 10,000 9,000 19,000 $ 9,600 $12,000 $21,600 Pam Kuder, CEO, expected the total industry sales to be 1,400,000 barrels during the period. After the year, Mark Goldfeder, the controller, reported that the total sales for the industry were 1,500,000 barrels. Required: Calculate the following: 1. Selling price variances for the period for each product and for the firm. 2. Sales volume variances for the period for each product and for the firm. 3. Sales quantity variances for each product and the firm. 4. Sales mix variances for the period for each product and for the firm. 5. The sum of the sales quantity variance and sales mix variance. Also, verify that this total equals the sales volume variance. 6. Market size variance for the period. 7. Market share variance for the period. 8. The sum of the market size variance and market share variance. Also, verify that this total equals the sales quantity variance. (Enter your answers in thousands of dollars.) ) 1. Selling price variance - Premium Selling price variance - Regular Total selling price variance 2. Sales volume variance - Premium Sales volume variance - Regular Total sales volume variance 3. Sales quantity variances - Premium Sales quantity variances - Regular Total sales quantity variance 4. Sales mix variance - Premium Sales mix variance - Regular Total sales mix variance 5. Sales volume variance 6. Market size variance 7. Market share variance 8. Sales quantity variance