Question
Hello! This is the second homework question that I would like assistance with. A-Zone Media sells two models of e-readers. The budgeted price per unit
Hello! This is the second homework question that I would like assistance with.
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. (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.)
b. Compute the mix and quantity 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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