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Olivet Devices sells two models of fitness devices. The budgeted price per unit for the wireless model is $48 and the budgeted price per
Olivet Devices sells two models of fitness devices. The budgeted price per unit for the wireless model is $48 and the budgeted price per unit for the wireless and cellular model is $93. The master budget called for sales of 48,000 wireless models and 12,000 wireless and cellular models during the current year. Actual results showed sales of 36,000 wireless models, with a price of $45 per unit, and 15,000 wireless and cellular models, with a price of $90 per unit. The standard variable cost per unit is $35 for a wireless model and $70 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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To compute the sales activity variance and break it down into mix and quantity parts we need to compare the actual sales activity with the budgeted sa...Get Instant Access to Expert-Tailored Solutions
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