Question: Chow - 4 - Hounds ( C 4 H ) makes pet food for sale in supermarkets. C 4 H produces two general types: Branded
ChowHounds CH makes pet food for sale in supermarkets. CH produces two general types: Branded and Generic. The two differ primarily in the ingredients used. At budget, Branded sells for $ per case and has a variable cost to produce of $ per case. Generic sells for a budgeted $ per case and has a budgeted variable cost to produce of $ per case. CH expects to sell percent Branded and percent Generic regardless of the sales volume. CH budgeted total sales of cases for March. Actual case volume sold in March was cases, of which were Branded. Total actual revenues in March were $ of which $ were from sales of Branded cases.
Required:
a Compute the activity variance for CH for March.
b Compute the mix and quantity variances for March.
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