chapter 16

Exercise 16-27 (Algo) Sales Activity Variance (LO 16-3) The master budget at Cherrylawn Corporation at the beginning of the year was based on sales of 310,000 units with revenues of $3,410,000. Total variable costs were budgeted at $1,860,000 and fixed costs at $985,000. During the period, actual production and actual sales were 290,000 units. The actual revenues were $3,453,000. Actual variable costs were $13.50 per unit. Actual fixed costs were $1,015,000. Required: Prepare a sales activity variance analysis. Note: 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