Olivet Devices sells two models of fitness devices. The budgeted price per unit for the wireless...

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Olivet Devices sells two models of fitness devices. The budgeted price per unit for the wireless model is $48 and the budgeted price per unit for the wireless and cellular model is $93. The master budget called for sales of 48,000 wireless models and 12,000 wireless and cellular models during the current year. Actual results showed sales of 36,000 wireless models, with a price of $45 per unit, and 15,000 wireless and cellular models, with a price of $90 per unit. The standard variable cost per unit is $35 for a wireless model and $70 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. Olivet Devices sells two models of fitness devices. The budgeted price per unit for the wireless model is $48 and the budgeted price per unit for the wireless and cellular model is $93. The master budget called for sales of 48,000 wireless models and 12,000 wireless and cellular models during the current year. Actual results showed sales of 36,000 wireless models, with a price of $45 per unit, and 15,000 wireless and cellular models, with a price of $90 per unit. The standard variable cost per unit is $35 for a wireless model and $70 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.

Answer rating: 100% (QA)

To compute the sales activity variance and break it down into mix and quantity parts we need to compare the actual sales activity with the budgeted sa... View the full answer