Jamie runs a cold brew coffee business selling two main variants in 350-mL ready-to- drink (RTD)...

   

Transcribed Image Text:

Jamie runs a cold brew coffee business selling two main variants in 350-mL ready-to- drink (RTD) bottled forms: (1) black cold brew, and (2) sweetened cold brew. She is analyzing the results of her operations for the first quarter of 2020 and has gathered the following data: Selling Price Sales in Units Cost of 350-ml Glass Bottle Grams of Coffee per Unit Cost of Coffee Blend per Gram Grams of Sugar per Unit Cost of Sugar per Gram Direct-Labor Hours per Unit Direct Labor Rate per Hour Black Cold Brew Refrigeration Hours per Unit Variable Overhead Cost per Fixed Overhead Cost Actual Php 80 6,250 Php 11.50 24 grams Php 0.325 N/A N/A 0.10 hours Php 110 Budgeted/ Standard Php 90 6,000 Php 12.00 20 grams Php 0.300 N/A N/A 0.15 hours Php 100 Sweetened Cold Brew Budgeted/ Standard Unit-Refrigeration-Hour Actual Php 100 8,900 Php 11.50 24 grams Php 0.325 20 grams Php 0.055 0.20 hours Php 110 Jamie's manufacturing overhead costs are allocated over the number of unit- refrigeration-hours (i.e., the number of units multiplied by the number of hours they are refrigerated during production and storage before they are sold). Php 110 8,500 Php 12.00 20 grams Php 0.300 25 grams Php 0.052 0.15 hours Php 100 Budgeted/ Standard Actual 60 hours 64 hours Php 0.12 | Php 184,000 | Php 174,000 Php 0.10 For the questions below, make sure to label the variances as favorable (F) or unfavorable (U). Follow the templates presented in the modules. For Chapter 7, refer to slides 7, 11, and 28. For Chapter 8, refer to slides 15, 22, and 29. [15 points] a. [2.0 points] Present a Level 1 analysis for Jamie's direct cost variances for her entire business [static-budget variances; refer to Chapter 7's PPT, slide 7]. b. [3.0 points] Present a Level 2 analysis for Jamie's direct cost variances for her entire business (flexible-budget variances and sales-volume variances; refer to Chapter 7's PPT, slide 11]. c. [3.0 points] Present a Level 3 analysis for Jamie's direct cost variances for the black cold brew and the sweetened cold brew [price variances and efficiency variances; refer to Chapter 7's PPT, slide 28]. d. [1.5 points] Present a Level 2 and Level 3 analysis for Jamie's variable overhead cost variances for her entire business as a whole [spending variance, efficiency variance, and flexible-budget variance; refer to Chapter 8's PPT, slide 15]. e. [1.5 points] Present a Level 2 and Level 3 analysis for Jamie's fixed overhead cost variances for her entire business [spending variance, production-volume variance, and flexible-budget variance; refer to Chapter 8's PPT, slide 22]. f. [1.0 point] Present a 4-variance analysis for Jamie's overhead cost variances for her entire business [refer to Chapter 8's PPT, slide 29]. What is the overall total overhead variance? g. [3.0 points] What conclusions can you draw from the variance analyses above? What actions or strategies should Jamie implement to improve her performance based on these conclusions? [Limit your answers to 3 actions/strategies. Explain each with 2 to 3 sentences.] Jamie runs a cold brew coffee business selling two main variants in 350-mL ready-to- drink (RTD) bottled forms: (1) black cold brew, and (2) sweetened cold brew. She is analyzing the results of her operations for the first quarter of 2020 and has gathered the following data: Selling Price Sales in Units Cost of 350-ml Glass Bottle Grams of Coffee per Unit Cost of Coffee Blend per Gram Grams of Sugar per Unit Cost of Sugar per Gram Direct-Labor Hours per Unit Direct Labor Rate per Hour Black Cold Brew Refrigeration Hours per Unit Variable Overhead Cost per Fixed Overhead Cost Actual Php 80 6,250 Php 11.50 24 grams Php 0.325 N/A N/A 0.10 hours Php 110 Budgeted/ Standard Php 90 6,000 Php 12.00 20 grams Php 0.300 N/A N/A 0.15 hours Php 100 Sweetened Cold Brew Budgeted/ Standard Unit-Refrigeration-Hour Actual Php 100 8,900 Php 11.50 24 grams Php 0.325 20 grams Php 0.055 0.20 hours Php 110 Jamie's manufacturing overhead costs are allocated over the number of unit- refrigeration-hours (i.e., the number of units multiplied by the number of hours they are refrigerated during production and storage before they are sold). Php 110 8,500 Php 12.00 20 grams Php 0.300 25 grams Php 0.052 0.15 hours Php 100 Budgeted/ Standard Actual 60 hours 64 hours Php 0.12 | Php 184,000 | Php 174,000 Php 0.10 For the questions below, make sure to label the variances as favorable (F) or unfavorable (U). Follow the templates presented in the modules. For Chapter 7, refer to slides 7, 11, and 28. For Chapter 8, refer to slides 15, 22, and 29. [15 points] a. [2.0 points] Present a Level 1 analysis for Jamie's direct cost variances for her entire business [static-budget variances; refer to Chapter 7's PPT, slide 7]. b. [3.0 points] Present a Level 2 analysis for Jamie's direct cost variances for her entire business (flexible-budget variances and sales-volume variances; refer to Chapter 7's PPT, slide 11]. c. [3.0 points] Present a Level 3 analysis for Jamie's direct cost variances for the black cold brew and the sweetened cold brew [price variances and efficiency variances; refer to Chapter 7's PPT, slide 28]. d. [1.5 points] Present a Level 2 and Level 3 analysis for Jamie's variable overhead cost variances for her entire business as a whole [spending variance, efficiency variance, and flexible-budget variance; refer to Chapter 8's PPT, slide 15]. e. [1.5 points] Present a Level 2 and Level 3 analysis for Jamie's fixed overhead cost variances for her entire business [spending variance, production-volume variance, and flexible-budget variance; refer to Chapter 8's PPT, slide 22]. f. [1.0 point] Present a 4-variance analysis for Jamie's overhead cost variances for her entire business [refer to Chapter 8's PPT, slide 29]. What is the overall total overhead variance? g. [3.0 points] What conclusions can you draw from the variance analyses above? What actions or strategies should Jamie implement to improve her performance based on these conclusions? [Limit your answers to 3 actions/strategies. Explain each with 2 to 3 sentences.]

Answer rating: 100% (QA)

a Level 3 analysis for direct cost variances Black Cold Brew Price Variance Actual Price Standard Price Actual Quantity Php 100 Php 80 8900 units Php 178000 Favorable Efficiency Variance Actual Quanti... View the full answer