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A machine distributor sells two models, basic and deluxe. The following information relates to its master budget. Basic Deluxe Sales (units) 10,400 2,600 Sales price
A machine distributor sells two models, basic and deluxe. The following information relates to its master budget.
Basic | Deluxe | |||||
Sales (units) | 10,400 | 2,600 | ||||
Sales price per unit | $ | 8,060 | $ | 12,060 | ||
Variable costs per unit | $ | 8,320 | $ | 9,900 | ||
Actual sales were 9,400 basic models and 3,400 deluxe models. The actual sales prices were the same as the budgeted sales prices for both models. Is the sales activity variance for the deluxe model favorable or unfavorable?
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