Question
A-Zone Media sells two models of e-readers. The budgeted price per unit for the wireless model is $210 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 $210 and the budgeted price per unit for the wireless and cellular model is $452. The master budget called for sales of 11,800 wireless models and 3,400 wireless and cellular models during the current year. Actual results showed sales of 9,300 wireless models, with a price of $290 per unit, and 5,000 wireless and cellular models, with a price of $760 per unit. The standard variable cost per unit is $98 for a wireless model and $250 for a wireless and cellular model.
Required:
a.Compute the activity variance for these data.(Do not roundintermediate 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.)
b.Compute the mix and quantity variance for these data.(Do not roundintermediate 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.)
A-Zone Media sells two models of e-readers. The budgeted price per unit for the wireless model is $210 and the budgeted price per unit for the wireless and cellular model is $452. The master budget called for sales of 11,800 wireless models and 3,400 wireless and cellular models during the current year. Actual results showed sales of 9 wireless models, with a price of $290 per unit, and 5,000 wireless and cellular models, with a price of $760 per u The standard variable cost per unit is $98 for a wireless model and $250 for a wireless and cellular model. Required: a. 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.) Favorable/Unfavorable Activity Variance 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.) Favorable/Unfavorable Mix Variance Quantity Variance ess model is $210 and the called for sales of 11,800 results showed sales of 9,300 with a price of $760 per unit. and cellular model. e calculations. avorable. If there isStep by Step Solution
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