Question
Olivet Devices sells two models of fitness devices. The budgeted price per unit for the wireless model is $47 and the budgeted price per unit
Olivet Devices sells two models of fitness devices. The budgeted price per unit for the wireless model is $47 and the budgeted price per unit for the wireless and cellular model is $92. The master budget called for sales of 47,200 wireless models and 11,800 wireless and cellular models during the current year. Actual results showed sales of 35,500 wireless models, with a price of $44 per unit, and 14,700 wireless and cellular models, with a price of $89 per unit. The standard variable cost per unit is $34 for a wireless model and $69 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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