Mulcahy Enterprises produces and sells three models of video disc players. Budgeted and actual information follow.

Required
A. Compute the sales price variances for each video disc model.
B. Compute the sales quantity variances for each video disc model.
C. Prove that the total of the variances explains the difference between actual and budgeted sales for the period.

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Model Type Model A 2356 Model B 2875 Model C 2742 Total Budgeted Units Budgeted Sales Actual Units tual Sales $ 902,000 911,800 780,000 4,000 ,000 2,000 s 800,000 925,000 660000 4,100 4,850 2,400