Question
A-Zone Media sells two models of e-readers. The budgeted price per unit for the wireless model is $197 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 $197 and the budgeted price per unit for the wireless and cellular model is $426. The master budget called for sales of 10,500 wireless models and 2,750 wireless and cellular models during the current year. Actual results showed sales of 8,000 wireless models, with a price of $225 per unit, and 4,350 wireless and cellular models, with a price of $500 per unit. The standard variable cost per unit is $85 for a wireless model and $185 for a wireless and cellular model.
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.)
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