Saras Systems manufactures audio systems for cars. Two models are produced: The Standard model has a budgeted price of $180 and a standard variable cost of $60. The Blaster model has a budgeted price of $460 and a standard variable cost of $140. At the beginning of the year, Sara estimated that she would sell 5,920 Blaster models and 23,680 Standard models. The actual results for the year showed that 7,410 Blaster models were sold for total revenues of $3,186,300. A total of 25,600 Standard models were sold for revenues of $5,120,000.

Required:

a. Compute the activity variance 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.)

Activity variance

F

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 variance		F
Quantity variance		F