Allonby Foods processes frozen meals for sale in grocery and other retail outlets Two versions are produced. The FlavorPak version has a budgeted price of $16 per case and a standard variable cost of $9 per case. The Gourmet version has a budgeted price of $29 per case and a standard variable cost of $18 per case. At the beginning of the year, the Marketing Group at Allonby estimated that the company would sell 60.360 cases of the FlavorPak version and 36,216 cases of the Gourmet version. The actual results for the year showed that 57060 cases of the FlavorPak version and 38.040 cases of the Gourmet version were sold. Total revenues generated by sales of both versions amounted to $2.017950 with $1,082,400 coming from the Gourmet version sales

Required:
a. Compute the sales activity variance for the year
b. Compute the mix and quantity vanances for the year.

Question

07-06-2024
Business

Answered

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Allonby Foods processes frozen meals for sale in grocery and other retail outlets Two versions are produced. The FlavorPak version has a budgeted price of $16 per case and a standard variable cost of $9 per case. The Gourmet version has a budgeted price of $29 per case and a standard variable cost of $18 per case. At the beginning of the year, the Marketing Group at Allonby estimated that the company would sell 60.360 cases of the FlavorPak version and 36,216 cases of the Gourmet version. The actual results for the year showed that 57060 cases of the FlavorPak version and 38.040 cases of the Gourmet version were sold. Total revenues generated by sales of both versions amounted to $2.017950 with $1,082,400 coming from the Gourmet version sales

Required:
a. Compute the sales activity variance for the year
b. Compute the mix and quantity vanances for the year.

Sagot :

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