A-Zone Media sells two models of e-readers. The budgeted price per unit for the wireless...
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Accounting
A-Zone Media sells two models of e-readers. The budgeted price per unit for the wireless model is $199 and the budgeted price per unit for the wireless and cellular model is $430. The master budget called for sales of 10,700 wireless models and 2,850 wireless and cellular models during the current year. Actual results showed sales of 8,200 wireless models, with a price of $235 per unit, and 4,450 wireless and cellular models, with a price of $540 per unit. The standard variable cost per unit is $87 for a wireless model and $195 for a wireless and cellular model.
Required:
a. Compute the activity variance for these data. (Do not roundintermediate 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.)
b. Compute the mix and quantity variance for these data. (Do not roundintermediate 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.)
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