Beatrice Math offers two tutoring models: individual and group. The individual model provides one-on-one tutoring while the group model consists of groups of no more than four students. The individual model has a budgeted average price of $275. The group model has a budgeted. average price of $75. The manager of the tutoring center believes that 65 percent of the customers will choose the group model. The individual model averages $185 and the group model averages $45 in budgeted variable cost. The manager estimates that about 160 people will purchase tutoring services in any month. For October, the tutoring center served a total of 170 customers, including 110 that chose the group option. Required: a. Compute the sales activity variance for the tutoring center for October. b. Compute the mix and quantity variances for October.

Beatrice Math offers two tutoring models: individual and group. The individual model provides one-on-one tutoring while the group model consists of groups of no more than four students. The individual model has a budgeted average price of $275. The group model has a budgeted. average price of $75. The manager of the tutoring center believes that 65 percent of the customers will choose the group model. The individual model averages $185 and the group model averages $45 in budgeted variable cost. The manager estimates that about 160 people will purchase tutoring services in any month. For October, the tutoring center served a total of 170 customers, including 110 that chose the group option. Required: a. Compute the sales activity variance for the tutoring center for October. b. Compute the mix and quantity variances for October.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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