Exercise 17-20 Sales Mix and Quantity Variances (LO 17-3) Renees Rings manufactures college rings. Two models are produced: The Spirit model with a budgeted price of $610 and a standard variable cost of $310. The Chancellor model has a budgeted price of $1,310 and a standard variable cost of $510. At the beginning of the year, Renee estimated that she would sell 2,200 Chancellor rings and 7,800 Spirit rings. The actual results for the year showed that 1,800 Chancellor rings were sold for total revenues of $2,088,000. A total of 7,300 Spirit rings were sold for revenues of $4,635,500.

Required:

(a) Compute the activity variance for Renees Rings for the year. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Do not round your intermediate calculations.)

(b) Compute the mix and quantity variances for the year. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Do not round your intermediate calculations.) ReferenceseBook & Resources Exercise