Olivet Devices sells two models of fitness devices. The budgeted price per unit for the wireless model is $56 and the budgeted price per unit for the wireless and cellular model is $101. The master budget called for sales of 54,400 wireless models and 13,600 wireless and cellular models during the current year. Actual results showed sales of 40,000 wireless models, with a price of $53 per unit, and 17,400 wireless and cellular models, with a price of $98 per unit. The standard variable cost per unit is $43 for a wireless model and $78 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.( mix Variance=? Quantity Variance=?)

Olivet Devices sells two models of fitness devices. The budgeted price per unit for the wireless model is $56 and the budgeted price per unit for the wireless and cellular model is $101. The master budget called for sales of 54,400 wireless models and 13,600 wireless and cellular models during the current year. Actual results showed sales of 40,000 wireless models, with a price of $53 per unit, and 17,400 wireless and cellular models, with a price of $98 per unit. The standard variable cost per unit is $43 for a wireless model and $78 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.( mix Variance=? Quantity Variance=?)

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter8: Budgeting For Planning And Control

Section: Chapter Questions

Problem 11CE: Shalimar Company manufactures and sells industrial products. For next year, Shalimar has budgeted...

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Olivet Devices sells two models of fitness devices. The budgeted price per unit for the wireless model is $47 and the budgeted price per unit for the wireless and cellular model is $92. The master budget called for sales of 47,200 wireless models and 11,800 wireless and cellular models during the current year. Actual results showed sales of 35,500 wireless models, with a price of $44 per unit, and 14,700 wireless and cellular models, with a price of $89 per unit. The standard variable cost per unit is $34 for a wireless model and $69 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.
During the current year, Mute Corporation expected to sell 24,600 telephone switches. Fixed costs for the year were expected to be $12,147,000, the unit sales price was budgeted at $3,500, and unit variable costs were budgeted at $1,680. Mute's margin of safety (MOS) in units is Multiple Choice O O 17,925. 21,705. 23,015. 19,095. 17,795.