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1) A division can sell externally for $71 per unit. Its variable manufacturing costs are $39 per unit, and its variable marketing costs are $13

1)

A division can sell externally for $71 per unit. Its variable manufacturing costs are $39 per unit, and its variable marketing costs are $13 per unit. What is the opportunity cost of transferring internally, assuming the division is operating at capacity?

$32.

$52.

$19.

$39.

2)

A machine distributor sells two models, basic and deluxe. The following information relates to its master budget.

Basic Deluxe
Sales (units) 8,100 2,100
Sales price per unit $ 8,200 $ 12,200
Variable costs per unit $ 6,500 $ 9,100

Actual sales were 6,800 basic models and 3,000 deluxe models. The actual sales prices were the same as the budgeted sales prices for both models. What is the sales activity variance for the basic model?

$2,210,000.

$1,530,000.

$11,560,000.

$13,770,000.

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