A-Zone Media sells two models of e- readers. The budgeted price per unit for the wireless model is $208 and the budgeted price per unit for the wireless and cellular model is $448. The master budget called for sales of 11,600 wireless models and 3,300 wireless and cellular models during the current year. Actual results showed sales of 9,100 wireless models, with a price of $280 per unit, and 4,900 wireless and cellular models, with a price of $720 per unit. The standard variable cost per unit is $96 for a wireless model and $240 for a wireless and cellular model. Required: a. Compute the activity variance for these data. (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.)
A-Zone Media sells two models of e- readers. The budgeted price per unit for the wireless model is $208 and the budgeted price per unit for the wireless and cellular model is $448. The master budget called for sales of 11,600 wireless models and 3,300 wireless and cellular models during the current year. Actual results showed sales of 9,100 wireless models, with a price of $280 per unit, and 4,900 wireless and cellular models, with a price of $720 per unit. The standard variable cost per unit is $96 for a wireless model and $240 for a wireless and cellular model. Required: a. Compute the activity variance for these data. (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.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Question
Please do not give solution in image format thanku
Transcribed Image Text:A-Zone Media sells two models of e-
readers. The budgeted price per unit for
the wireless model is $208 and the
budgeted price per unit for the wireless
and cellular model is $448. The master
budget called for sales of 11,600 wireless
models and 3,300 wireless and cellular
models during the current year. Actual
results showed sales of 9,100 wireless
models, with a price of $280 per unit, and
4,900 wireless and cellular models, with a
price of $720 per unit. The standard
variable cost per unit is $96 for a wireless
model and $240 for a wireless and cellular
model.
Required:
a. Compute the activity variance for these
data. (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 variance for these data. (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
EU
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 4 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education