Variance analysis, multiple products. The Split Banana, Inc., operates a chain of Italian gelato stores. Although the
Question:
Variance analysis, multiple products. The Split Banana, Inc., operates a chain of Italian gelato stores. Although the Split Banana charges customers the same price for all flavors, production costs vary, depending on the type of ingredients. Budgeted and actual operating data of its three Washington, DC, stores for August 2011 are as follows:
Budget for August 2011
Actual for August 2011
The Split Banana focuses on contribution margin in its variance analysis.Required1. Compute the total sales-volume variance for August 2011.2. Compute the total sales-mix variance for August 2011.3. Compute the total sales-quantity variance for August 2011.4. Comment on your results in requirements 1, 2, and3.
Step by Step Answer:
Cost Accounting A Managerial Emphasis
ISBN: 978-0132109178
14th Edition
Authors: Charles T. Horngren, Srikant M.Dater, George Foster, Madhav