Exercise 17-30 (Static) Sales Mix and Quantity Variances (LO 17-4) Olivet Devices sells two models of fitness devices. The budgeted price per unit for the wireless model is $38 and the budgeted price per unit for the wireless and cellular model is $83. The master budget called for sales of 40,000 wireless models and 10,000 wireless and cellular models during the current year. Actual results showed sales of 31,000 wireless models, with a price of $35 per unit, and 12,000 wireless and cellular models, with a price of $80 per unit. The standard variable cost per unit is $25 for a wireless model and $60 for a wireless and cellular model. Required: a. Compute the sales activity variance for these data.. b. Break down the sales activity variance into mix and quantity parts Answer is complete but not entirely correct.
Exercise 17-30 (Static) Sales Mix and Quantity Variances (LO 17-4) Olivet Devices sells two models of fitness devices. The budgeted price per unit for the wireless model is $38 and the budgeted price per unit for the wireless and cellular model is $83. The master budget called for sales of 40,000 wireless models and 10,000 wireless and cellular models during the current year. Actual results showed sales of 31,000 wireless models, with a price of $35 per unit, and 12,000 wireless and cellular models, with a price of $80 per unit. The standard variable cost per unit is $25 for a wireless model and $60 for a wireless and cellular model. Required: a. Compute the sales activity variance for these data.. b. Break down the sales activity variance into mix and quantity parts Answer is complete but not entirely correct.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
s
Transcribed Image Text:Exercise 17-30 (Static) Sales Mix and Quantity Variances (LO 17-4)
Olivet Devices sells two models of fitness devices. The budgeted price per unit for the wireless model is $38 and the budgeted price
per unit for the wireless and cellular model is $83. The master budget called for sales of 40,000 wireless models and 10,000 wireless
and cellular models during the current year. Actual results showed sales of 31,000 wireless models, with a price of $35 per unit, and
12,000 wireless and cellular models, with a price of $80 per unit. The standard variable cost per unit is $25 for a wireless model and
$60 for a wireless and cellular model.
Required:
a. Compute the sales activity variance for these data..
b. Break down the sales activity variance into mix and quantity parts
Complete this question by entering your answers in the tabs below.
Required A Required B
Compute the sales 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 vanance
Answer is complete but not entirely correct.
117.000
U
< Required A
Required B >
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