What was the tequilla total price variance

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Reference no: EM132581299

You own Margarita Buena, a local establishment that serves beverages (when allowed).You have been concerned about your tequila costsand have the following information:Tequila is used exclusively in margaritas (not sold separately or as part of any other drink).Based on the margarita recipe standards, each and everycase of tequilais expected to yield (be used in the production of) a total of 144 margaritas. (12 bottles per case, 12 margaritas per bottle)The standard price (what we expect to pay our supplier) of tequila is $240 per case.The following actual results were recorded for last Saturday:Margarita Buena sold 360 margaritas.

Exactly 3 full cases of tequila were used at a total cost (for all 3 combined) of $360.

Question A) What was the tequilla total price variance(f or u)

Question B) What was the tequila total quantity variance (include "F"avorable or "U"nfavorable) for Saturday?

Question C) Based on your answers to the above what could have caused the both variances? Be specfic on which answer is for which variance and based on each variance cause what mangerial steps should you the owner take?

Reference no: EM132581299

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