Question: A machine distributor sells two models, basic and deluxe. The following information relates to its master budget. Basic Deluxe Sales (units) 8,400 2,100 Sales price
A machine distributor sells two models, basic and deluxe. The following information relates to its master budget.
| Basic | Deluxe | |||
| Sales (units) | 8,400 | 2,100 | ||
| Sales price per unit | $ | 8,200 | $ | 12,200 |
| Variable costs per unit | $ | 6,500 | $ | 9,100 |
| Actual sales were 7,400 basic models and 2,700 deluxe models. The actual sales prices were the same as the budgeted sales prices for both models. |
| What is the sales quantity variance for the basic model? |
$1,700,000.
$544,000.
$1,156,000.
$248,000.
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