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Exercise $17-31($Algo$)$ Sales Mix and Quantity Variances $($LO $17-4)$

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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 $60,060$ cases of the FlavorPak version and $36,036$ cases of the Gourmet version. The actual results for the year showed that $56,760$ cases of the FlavorPak version and $37,840$ cases of the Gourmet version were sold. Total revenues generated by sales of both versions amounted to $$1,997,950$ with $$1,062,400$ coming from the Gourmet version sales.

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Required:

a$.$ Compute the sales activity variance for the year.

b$.$ Compute the mix and quantity variances for the year.

Complete this question by entering your answers in the tabs below.

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Compute the sales activity variance for the year.

Note: 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.

Activity variance

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