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Fundamentals of Cost Accounting 2nd Edition by William Lanen, Carolyn Wells, Michael Maher
Edition 2ISBN: 978-0077274993Fundamentals of Cost Accounting 2nd Edition by William Lanen, Carolyn Wells, Michael Maher
Edition 2ISBN: 978-0077274993 Exercise 27
Sales Mix and Quantity Variances
AAA Electronics sells two models of electronic organizers. The budgeted price per unit for the regular model is $109.50 and the budgeted price per unit for the wireless model is $249.50. The master budget called for sales of 40,000 regular models and 18,000 wireless models during the current year. Actual results showed sales of 30,000 regular models, with a price of $112.90 per unit, and 20,000 wireless models, with a price of $253.90 per unit. The standard variable cost per unit is $50 for a regular model and $100 for a wireless model.
Required
a. Compute the activity variance for these data.
b. Break down the activity variance into mix and quantity parts.
AAA Electronics sells two models of electronic organizers. The budgeted price per unit for the regular model is $109.50 and the budgeted price per unit for the wireless model is $249.50. The master budget called for sales of 40,000 regular models and 18,000 wireless models during the current year. Actual results showed sales of 30,000 regular models, with a price of $112.90 per unit, and 20,000 wireless models, with a price of $253.90 per unit. The standard variable cost per unit is $50 for a regular model and $100 for a wireless model.
Required
a. Compute the activity variance for these data.
b. Break down the activity variance into mix and quantity parts.
Explanation
Verified
Verified
(a)The sales activity variance is to ana...
Fundamentals of Cost Accounting 2nd Edition by William Lanen, Carolyn Wells, Michael Maher
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