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.
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 9E: Nozama.com Inc. sells consumer electronics over the Internet. For the next period, the budgeted cost...
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