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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
Sales Mix and Quantity Variances
Mattie’s 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 |
$7.00 |
$8.25 |
$6.75 |
 |
|
Budgeted variable cost |
$5.00 |
$6.00 |
$4.75 |
 |
|
Budgeted selling quantity |
10,400 |
3,900 |
11,700 |
26,000 |
|
Actual selling price |
$7.25 |
$8.10 |
$7.10 |
 |
|
Actual variable cost |
$5.10 |
$6.10 |
$5.10 |
 |
|
Actual selling quantity |
8,000 |
6,000 |
11,000 |
25,000 |
Required
a. Compute the sales price variance for all three wines.
b. Compute the activity variance for Mattie’s Vineyards for the year.
c. Compute the mix and quantity variances for Mattie’s Vineyards for the year.
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