Gourmet Aroma Coffee House Has an Exclusive Contract with Columbia

question 93

Multiple Choice

Gourmet Aroma Coffee House has an exclusive contract with Columbia exporters.Two brands of gourmet coffee are imported,Morning Thunder (MT) and Evening Tender (ET) .The following data are provided for the current fiscal year:
The total market was estimated to be 80,000 pounds at the time of budget.The actual total market for the year is 75,000 pounds.
What is MT's sales mix variance?

• A)$800 unfavorable.
• B)$9,600 unfavorable.
• C)$10,800 unfavorable.
• D)$12,480 unfavorable.
• E)$14,040 unfavorable.

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Definitions:

Labor Distribution Report

A report issued by the payroll department to categorize all the types of labor incurred during the week.

Manufacturing Overhead-Applied

Refers to the allocation of all indirect costs of production to the products manufactured.

Manufacturing Overhead-Control

An account that tracks the costs associated with the manufacturing process that are not directly tied to the production of goods, such as utilities and manager salaries.

Labor Distribution Report

A detailed report showing the allocation of labor hours and costs across different jobs, departments, or tasks within an organization.