Question
Saras Systems manufactures audio systems for cars. Two models are produced: The Standard model has a budgeted price of $240 and a standard variable cost
Saras Systems manufactures audio systems for cars. Two models are produced: The Standard model has a budgeted price of $240 and a standard variable cost of $120. The Blaster model has a budgeted price of $520 and a standard variable cost of $200. At the beginning of the year, Sara estimated that she would sell 6,160 Blaster models and 24,640 Standard models. The actual results for the year showed that 7,240 Blaster models were sold for total revenues of $3,040,800. A total of 25,100 Standard models were sold for revenues of $6,275,000. Find Activity Variance, Mix Variance and Quantity Variance.
Sara's Systems manufactures audio systems for cars. Two models are produced: The Standard model has a budgeted price of $240 and a standard variable cost of $120. The Blaster model has a budgeted price of $520 and a standard variable cost of $200. At the beginning of the year, Sara estimated that would sell 6.160 Blaster models and 24,640 Standard models. The actual results for the year showed that 7,240 Blaster models were sold for total revenues of $3,040,800 A total of 25,100 Standard models were sold for revenues of 56 275,000 Required: a. Compute the activity variance for the year. (Do not found 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 vanance b. Compute the mix and quantity variances for the year (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.) Mix vanance Quantity varianceStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started