Question: A machine distributor sells two models, basic and deluxe. The following information relates to its master budget. Basic Deluxe Sales (units) 8,800 2,200 Sales price
A machine distributor sells two models, basic and deluxe. The following information relates to its master budget. Basic Deluxe Sales (units) 8,800 2,200 Sales price per unit $8,020 $ 12,020 Variable costs per unit $ 7,040 $9,300 Actual sales were 7,800 basic models and 3,000 deluxe models. The actual sales prices were the same as the budgeted sales prices for both models. Is the sales activity variance for the deluxe model favorable or unfavorable? Favorable Unfavorable
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