a. Budgeted liquor sales revenue at a banquet were 1,500 drinks at $5.00 each. A

Question

a. Budgeted liquor sales revenue at a banquet were 1,500 drinks at $5.00 each. Actual sales were 1,550 drinks at $4.80 each. Determine the price and sales volume variances.

b. Banquet food sales revenue for a month were estimated to be 20,000 covers at $14.00 each. Actual sales were 21,500 customers at $13.50 each. Determine the price and sales volume variances.

c. Budgeted banquet food cost for a week was 1,000 covers at $6.00 each. Actual covers were 900 at $6.25 each. Determine the cost and sales volume variances. d. A snack bar budgets 14,000 covers with an average check of $6.45, and an average cost per customer of $2.45. Actual results were 14,800 customers, and an average check of $6.75; average cost per cover was $2.25. Determine the price and sales volume variances for sales revenue, and the cost and sales volume variances for the expense.

e. At a convention buffet, 400 customers are expected, and it is estimated that one waitress will be required for each 20 anticipated guests (for serving beverages). Basic wage rate is $8.00 an hour, and a minimum of 4 hours must be paid each waitress. No overtime is anticipated, but it might occur. Calculate the budgeted payroll cost for this function. After the event, payroll records indicate that a total of 84 hours were actually worked at a total actual labor cost of $714. Analyze total payroll for cost and quantity variances.

Explanation / Answer

a Liquor Sales Volume & Price variance Budgeted Qauntity*Budgeted Price Actual Quantity*Budgeted Price Actual quanity*actual Price =1500*5 =1550*5 =1550*4.8 7500 7750 7440 Sales Volume Variance Sales Price Variance =7550-7500 =7440-7550 50 Favourable -110 Unfavourable b) Banquet food Budgeted Qauntity*Budgeted Price Actual Quantity*Budgeted Price Actual quanity*actual Price =20000*14 =21500*14 =21500*13.50 280000 301000 290250 Sales Volume Variance Sales Price Variance =301000-280000 =290250-301000 21000 Favourable -10750 Unfavourable c) Banquat Food Budgeted Qauntity*Budgeted cost Actual Quantity*Budgeted cost Actual quanity*actual cost =1000*6 =900*6 =900*6.25 6000 5400 5625 Sales Volume Variance Cost Variance =6000*5400 =5400-5625 600 Favourable -225 Unfavourable d) Snack Bar Budgeted Qauntity*Budgeted Price Actual Quantity*Budgeted Price Actual quanity*actual Price =14000*6.45 =14800*6.45 =14800*6.75 90300 95460 99900 Sales Volume Variance Sales Price Variance =95460-90300 =99900-95460 5160 Favourable 4440 Favourable Budgeted Qauntity*Budgeted cost Actual Quantity*Budgeted cost Actual quanity*actual cost =14000*2.45 =14800*2.45 =14800*2.25 34300 36260 33300 Sales Volume Variance Cost Variance =34300-36260 =36260-33300 -1960 Unfavourable 2960 Favourable As per policy of chegg, we can't answer more than 4 subparts of a question We appreciate, if you rate our answers Thank You

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.