Question
Olivet Devices sells two models of fitness devices. The budgeted price per unit for the wireless model is $45 and the budgeted price per unit
Olivet Devices sells two models of fitness devices. The budgeted price per unit for the wireless model is $45 and the budgeted price per unit for the wireless and cellular model is $90. The master budget called for sales of 45,600 wireless models and 11,400 wireless and cellular models during the current year. Actual results showed sales of 34,500 wireless models, with a price of $42 per unit, and 14,100 wireless and cellular models, with a price of $87 per unit. The standard variable cost per unit is $32 for a wireless model and $67 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.
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