Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Olivet Devices sells two models of fitness devices. The budgeted price per unit for the wireless model is $ 5 5 and the budgeted price

Olivet Devices sells two models of fitness devices. The budgeted price per unit for the wireless model is $55 and the budgeted price per unit for the wireless and cellular model is $100. The master budget called for sales of 53,600 wireless models and 13,400 wireless and cellular models during the current year. Actual results showed sales of 39,500 wireless models, with a price of $52 per unit, and 17,100 wireless and cellular models, with a price of $97 per unit. The standard variable cost per unit is $42 for a wireless model and $77 for a wireless and cellular model.
Required:
a. Compute the sales activity variance for these data.
b. Break down the sales activity variance into mix and quantity parts.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting

Authors: Ray Garrison, Eric Noreen, Peter Brewer

16th edition

1259307417, 978-1260153132, 1260153134, 978-1259307416

More Books

Students also viewed these Accounting questions