Question
A-Zone Media sells two models of e-readers. The budgeted price per unit for the wireless model is $201 and the budgeted price per unit for
A-Zone Media sells two models of e-readers. The budgeted price per unit for the wireless model is $201 and the budgeted price per unit for the wireless and cellular model is $434. The master budget called for sales of 10,900 wireless models and 2,950 wireless and cellular models during the current year. Actual results showed sales of 8,400 wireless models, with a price of $245 per unit, and 4,550 wireless and cellular models, with a price of $580 per unit. The standard variable cost per unit is $89 for a wireless model and $205 for a wireless and cellular model.
Required:
a. Compute the activity variance for these data.
b. Compute the mix and quantity variance for these data. (Enter your answers rounded to the nearest whole dollar.)
A-Zone Media sells two models of e-readers. The budgeted price per unit for the wireless model is $201 and the budgeted price per unit for the wireless and cellular model is $434. The master budget called for sales of 10,900 wireless models and 2,950 wireless and cellular models during the current year. Actual results showed sales of 8,400 wireless models, with a price of $245 per unit, and 4,550 wireless and cellular models, with a price of $580 per unit. The standard variable cost per unit is $89 for a wireless model and $205 for a wireless and cellular model. Required: a. Compute the activity variance for these data. b. Compute the mix and quantity variance for these data. (Enter your answers rounded to the nearest whole dollar.) Complete this question by entering your answers in the tabs below. Required A Required B Compute the activity variance for these data. (Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.) Activity variance Complete this question by entering your answers in the tabs below. Required A Required B Compute the mix and quantity variance for these data. (Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.) Mix variance Quantity variance
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