You own MargaritaVilla, a local establishment that serves beverages.

You have been concerned about your tequila costsand have the following information:

Tequila is used exclusively in margaritas (not sold separately or as part of any other drink).

Based on the margarita recipe standards, each and every case of tequila

is expected to yield (be used in the production of) a total of 144 margaritas.

(12 bottles per case, 12 margaritas per bottle)

The standard price (what we expect to pay our supplier) of tequila is $240 per case.

The following actual results were recorded forlast Saturday (one night of business!):

MargaritaVilla sold 360 margaritas.

Exactly 3 full cases of tequila were used at atotal cost (total of all 3 cases) of (see below).

Total actual cost of tequila used: $684

Based on the above, answer questions A). B) and C) below:

A) What was the tequila totalprice variance(include "F"avorable" or "U"nfavorable") for Saturday? (for full or partial credit, show some work and/or calculations and clearly identify answers)

B) What was the tequila totalquantity variance(include "F"avorable or "U"nfavorable) for Saturday (for full or partial credit, show some work and/or calculations and clearly identify answers)

C)(evaluated forappropriateness and completeness) Based on your answers to A) and B), what could have causedeach variance? (there were no errors in setting standards) Be specific on which answer is for which variance. Andbased oneach variance cause,what managerial steps should you (the owner) take? (Note: Available space below, but watch your right-side margins, make sure answers don't get cutoff!)