Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Saras Systems manufactures audio systems for cars. Two models are produced: The Standard model has a budgeted price of $160 and a standard variable cost

Saras Systems manufactures audio systems for cars. Two models are produced: The Standard model has a budgeted price of $160 and a standard variable cost of $40. The Blaster model has a budgeted price of $440 and a standard variable cost of $120. At the beginning of the year, Sara estimated that she would sell 5,840 Blaster models and 23,360 Standard models. The actual results for the year showed that 7,170 Blaster models were sold for total revenues of $2,868,000. A total of 26,900 Standard models were sold for revenues of $7,532,000.

image text in transcribed

can you please show how you got the solution. Thank you!

Sara's Systems manufactures audio systems for cars. Two models are produced: The Standard model has a budgeted price of $160 and a standard variable cost of $40. The Blaster model has a budgeted price of $440 and a standard variable cost of $120. At the beginning of the year, Sara estimated that she would sell 5,840 Blaster models and 23,360 Standard models. The actual results for the year showed that 7,170 Blaster models were sold for total revenues of $2,868,000. A total of 26,900 Standard models were sold for revenues of $7,532,000. 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 850,400EF 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 Quantity variance

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting Group

Authors: Ilse Lubbe, Shelley Herbert, Goolam Modack

1st Edition

0195998634, 9780195998634

More Books

Students also viewed these Accounting questions