during the current year. Actual results showed s s and cellular models, with a price of $93 per unit. The ess and cellular model. e sales activity variance for these data. the sales activity variance into mix and quantity parts-

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
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Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter18: Pricing And Profitability Analysis
Section: Chapter Questions
Problem 20E: Eastman, Inc., manufactures and sells three products: R, S, and T. In January, Eastman, Inc.,...
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Olivet Devices sells two models of fitness devices. The budgeted price per unit for the wireless model is $51 and the budgeted price
per unit for the wireless and cellular model is $96. The master budget called for sales of 50,400 wireless models and 12,600 wireless
and cellular models during the current year. Actual results showed sales of 37,500 wireless models, with a price of $48 per unit, and
15,900 wireless and cellular models, with a price of $93 per unit. The standard variable cost per unit is $38 for a wireless model and
$73 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.
Rquired 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 variance
< Required A
Required B >
Transcribed Image Text:Olivet Devices sells two models of fitness devices. The budgeted price per unit for the wireless model is $51 and the budgeted price per unit for the wireless and cellular model is $96. The master budget called for sales of 50,400 wireless models and 12,600 wireless and cellular models during the current year. Actual results showed sales of 37,500 wireless models, with a price of $48 per unit, and 15,900 wireless and cellular models, with a price of $93 per unit. The standard variable cost per unit is $38 for a wireless model and $73 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. Rquired 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 variance < Required A Required B >
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