A-Zone Media sells two models of e-readers. The budgeted price per unit for the wireless model is $210 and the budgeted price per unit for the wireless and cellular model is $452. The master budget called for sales of 11,800 wireless models and 3,400 wireless and cellular models during the current year. Actual results showed sales of 9,300 wireless models, with a price of $290 per unit, and 5,000 wireless and cellular models, with a price of $760 per unit. The standard variable cost per unit is $98 for a wireless model and $250 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: 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
A-Zone Media sells two models of e-readers. The budgeted price per unit for the wireless model is $210 and the budgeted price per unit for the wireless and cellular model is $452. The master budget called for sales of 11,800 wireless models and 3,400 wireless and cellular models during the current year. Actual results showed sales of 9,300 wireless models, with a price of $290 per unit, and 5,000 wireless and cellular models, with a price of $760 per unit. The standard variable cost per unit is $98 for a wireless model and $250 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: 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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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.
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Transcribed Image Text:A-Zone Media sells two models of e-readers. The budgeted price per unit for the wireless model is $210 and the budgeted price per
unit for the wireless and cellular model is $452. The master budget called for sales of 11,800 wireless models and 3,400 wireless and
cellular models during the current year. Actual results showed sales of 9,300 wireless models, with a price of $290 per unit, and 5,000
wireless and cellular models, with a price of $760 per unit. The standard variable cost per unit is $98 for a wireless model and $250 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:
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
Mix
variance
Quantit
y
variance
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