Question
In: Accounting
Lake Cellars produces and sells white wine. The following data concern the three varietals of white...
Lake Cellars produces and sells white wine. The following data concern the three varietals of white wine the company currently offers. Sales data for August are given below:
| Sauvignon Blanc | Chardonnay | Riesling | Total | |||||||||||
| Budgeted selling price | $ | 10.45 | $ | 11.70 | $ | 8.40 | ||||||||
| Budgeted variable cost | $ | 7.65 | $ | 9.20 | $ | 6.00 | ||||||||
| Budgeted selling quantity | 19,500 | 7,700 | 12,300 | 39,500 | ||||||||||
| Actual selling price | $ | 10.55 | $ | 6.55 | $ | 8.55 | ||||||||
| Actual variable cost | $ | 7.25 | $ | 9.05 | $ | 6.50 | ||||||||
| Actual selling quantity | 20,700 | 7,800 | 12,200 | 40,700 | ||||||||||
Required:
a. Compute the sales price variance for all three wines. (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. Compute the activity variance for Lake Cellars for August. (Do not round intermediate calculations. 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.)
c. Compute the mix and quantity variances for Lake Cellars for August. (Do not round intermediate calculations. 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.)
Solutions
Expert Solution
For any queries please comment, I have doubt in Activity Variance, rest all are correct.
If satisfied please give LIKE.
ekkarill92 answered 2 years agoRelated Solutions
Wine Glass Inc. produces and sells wine glasses. Per the Standards, for the months of May,...
Wine Glass Inc. produces and sells
wine glasses.
Per the Standards, for the months of
May, each wine glass takes 2 pounds of material at $2.50 per
pound.
For the Month of May, Wine Glass Inc.
planned on producing and selling 200 wine glasses. They actually
produced and sold 210 wine glasses, using 525 pounds of material
costing $1,181.25 in actual total cost.
What is the Materials Activity Variance for the Month of
May:
What is the Materials Spending Variance...
C&A produces three kinds of bread: wheat, white, and multigrain. The data on these products are...
C&A produces three kinds of bread: wheat, white, and multigrain. The data on these products are given below:
Wheat
White
Multigrain
Demand (lbs per hour)
50
20
10
Changeover time (min)
60
30
45
Production rate (lbs per hour)
200
200
200
How many lbs of white bread should C&A produce with each batch in order to minimize inventory while satisfying demand?
O 37.5
O 75
O 187.5
O 300
FCA Company“ produces and sells three products (A), (B) and (C).The following data and information are...
FCA Company“ produces
and sells three products (A), (B) and (C).The following data and
information are now accessible for the last year ended December 31,
2015:
(A)
(B)
( C )
Sale Revenue ( in
1000’s LE )
1600
1,000
1250
Contribution margin
per unit ( in LE )
24
20
5
Contribution margin
ratio
30%
40%
20%
The total special
fixed costs of the last year ( in 1000's
LE)
200
150
300
The share of the
total of...
A wine shop wants to serve its white wine at a mean temperature of 50 degrees....
A wine shop wants to serve its white wine at a mean temperature
of 50 degrees. In a sample of 36 glasses of wine, the mean was
found to be 53 with a standard deviation of 3. The wine shop is
interested to see if the evidence indicates that the wine shop is
not meeting its temperature standard.
(a) Using a significance level of α=0.05, perform a two-tailed
hypothesis test to determine if the wine shop is not meeting its...
The Cornerstone Corporation produces and sells a single product. The following data refers to the year...
The Cornerstone Corporation produces and sells a single
product. The following data refers to the year just
completed:
List of Account Titles
Beginning inventory
0
Units produced
9,000
Units sold
7,000
Selling price per unit
$
47
Selling and administrative expenses:
Variable Cost per unit
$
4
Fixed Cost per year
$
58,000
Manufacturing costs:
Direct materials cost per unit
$
10
Direct labor cost per unit
$
6
Variable manufacturing overhead cost per
unit
$
5
Fixed manufacturing overhead...
The Dorset Corporation produces and sells a single product. The following data refer to the year...
The Dorset Corporation produces and sells a single product. The
following data refer to the year just completed:
Beginning inventory
0
Units produced
30,300
Units sold
24,700
Selling price per unit
$
465
Selling and administrative
expenses:
Variable per unit
$
25
Fixed per year
$
469,300
Manufacturing costs:
Direct materials cost per
unit
$
211
Direct labor cost per unit
$
53
Variable manufacturing overhead
cost per unit
$
36
Fixed manufacturing overhead per
year
$
454,500
Assume that...
The Dorset Corporation produces and sells a single product. The following data refer to the year...
The Dorset Corporation produces and sells a single product. The
following data refer to the year just completed:
Beginning inventory 0 Units produced 32,700 Units sold 27,100
Selling price per unit $ 459 Selling and administrative expenses:
Variable per unit $ 20 Fixed per year $ 406,500 Manufacturing
costs: Direct materials cost per unit $ 298 Direct labor cost per
unit $ 52 Variable manufacturing overhead cost per unit $ 30 Fixed
manufacturing overhead per year $ 425,100 Assume that...
The Dorset Corporation produces and sells a single product. The following data refer to the year...
The Dorset Corporation produces and sells a single product. The
following data refer to the year just completed:
Beginning inventory
0
Units produced
34,000
Units sold
28,700
Selling price per unit
$
409
Selling and administrative expenses:
Variable per unit
$
18
Fixed per year
$
602,700
Manufacturing costs:
Direct materials cost per unit
$
252
Direct labor cost per unit
$
55
Variable manufacturing overhead cost per unit
$
32
Fixed manufacturing overhead per year
$
646,000
Assume that...
The Dorset Corporation produces and sells a single product. The following data refer to the year...
The Dorset Corporation produces and sells a single product. The
following data refer to the year just completed:
Beginning inventory
0
Units produced
31,700
Units sold
28,600
Selling price per unit
$
416
Selling and administrative expenses:
Variable per unit
$
22
Fixed per year
$
457,600
Manufacturing costs:
Direct materials cost per unit
$
240
Direct labor cost per unit
$
54
Variable manufacturing overhead cost per unit
$
37
Fixed manufacturing overhead per year
$
380,400
Assume that...
The Dorset Corporation produces and sells a single product. The following data refer to the year...
The Dorset Corporation produces and sells a single product. The
following data refer to the year just completed:
Beginning inventory
0
Units produced
28,000
Units sold
24,000
Selling price per unit
$
466
Selling and administrative expenses:
Variable per unit
$
21
Fixed per year
$
336,000
Manufacturing costs:
Direct materials cost per unit
$
296
Direct labor cost per unit
$
57
Variable manufacturing overhead cost per unit
$
34
Fixed manufacturing overhead per year
$
448,000
Assume that...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Part 1 Here is some code: def foo(var): var = [] var.append("hello") var.append("world") list = ["bah"]...
- Project Description In this project you will build a car configuration application in six units. Each...
- Golden Corp., a merchandiser, recently completed its 2017 operations. For the year, (1) all sales are...
- Project Description In this project you will build a car configuration application in six units. Each...
- The cost accounting department has asked you to check their EOQ figures. You have been given...
- List the 4 reasons for process termination.
- Give at least 5 nursing interventions (with rationale) for nursing diagnosis: Risk for ineffective sexuality patterns...
ADVERTISEMENT