Lee Lighting produces two models of floor lamps: Standard and Smart. The two differ primarily in the quality of the materials and the

additional electronics required for the Smart lamp. At budget, Standard sells for $$18$ per unit and has a variable cost to produce of $$12.$

The Smart lamp sells for a budgeted $$64$ per lamp and has a budgeted variable cost to produce of $$46.$ Lee expects to sell $40$ percent

Smart lamps, and budgeted sales at a total of $98,000$ lamps of both models for May. Lee actually sold $94,000$ lamps, of which $39,500$

were Smart lamps. Smart lamp actual revenues represented $40$ percent of May total actual revenue.

Required:

a$.$ Compute the sales activity variance for Lee for May.

b$.$ Compute the sales mix and sales quantity variances for May.

Complete this question by entering your answers in the tabs below.

Compute the sales activity variance for Lee for May.

Note: 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.

Activity variance