Question
A-Zone Media sells two models of e-readers. The budgeted price per unit for the wireless model is $193 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 $193 and the budgeted price per unit for the wireless and cellular model is $418. The master budget called for sales of 10,100 wireless models and 2,550 wireless and cellular models during the current year. Actual results showed sales of 7,600 wireless models, with a price of $205 per unit, and 4,150 wireless and cellular models, with a price of $420 per unit. The standard variable cost per unit is $81 for a wireless model and $165 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.
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