Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

AAA Electronics sells two models of tablet computers. The budgeted price per unit for the wireless model is $120 and the budgeted price per unit

AAA Electronics sells two models of tablet computers. The budgeted price per unit for the wireless model is $120 and the budgeted price per unit for the wireless and cellular model is $260. The master budget called for sales of 20,000 wireless models and 5,000 wireless and cellular models during the current year. Actual results showed sales of 15,000 wireless models, with a price of $125 per unit, and 8,000 wireless and cellular models, with a price of $250 per unit. The standard variable cost per unit is $50 for a wireless model and $100 for a wireless and cellular model.

Required:
(a)

Compute the activity variance for these data. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Do not roundyour intermediate calculations.)

(b)

Compute the mix and quantity variance for these data. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).Do not round your intermediate calculations.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions