Olivet Devices sells two models of fitness devices. The budgeted price per unit for the wireless model is $54 and the budgeted price per unit for the wireless and cellular model is $99. The master budget called for sales of 52,800 wireless models and 13,200 wireless and cellular models during the current year. Actual results showed sales of 39,000 wireless models, with a price of $51 per unit, and 16,800 wireless and cellular models, with a price of $96 per unit. The standard variable cost per unit is $41 for a wireless model and $76 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.
Olivet Devices sells two models of fitness devices. The budgeted price per unit for the wireless model is $54 and the budgeted price per unit for the wireless and cellular model is $99. The master budget called for sales of 52,800 wireless models and 13,200 wireless and cellular models during the current year. Actual results showed sales of 39,000 wireless models, with a price of $51 per unit, and 16,800 wireless and cellular models, with a price of $96 per unit. The standard variable cost per unit is $41 for a wireless model and $76 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Olivet Devices sells two models of fitness
devices. The budgeted price per unit for
the wireless model is $54 and the
budgeted price per unit for the wireless
and cellular model is $99. The master
budget called for sales of 52,800 wireless
models and 13,200 wireless and cellular
models during the current year. Actual
results showed sales of 39,000 wireless
models, with a price of $51 per unit, and
16,800 wireless and cellular models, with a
price of $96 per unit. The standard variable
cost per unit is $41 for a wireless model
and $76 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.
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