Question
A-Zone Media sells two models of e-readers. The budgeted price per unit for the wireless model is $204 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 $204 and the budgeted price per unit for the wireless and cellular model is $440. The master budget called for sales of 11,200 wireless models and 3,100 wireless and cellular models during the current year. Actual results showed sales of 8,700 wireless models, with a price of $260 per unit, and 4,700 wireless and cellular models, with a price of $640 per unit. The standard variable cost per unit is $92 for a wireless model and $220 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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