Porcini Enterprises Produces Two Products, AR and QT Required:
(Be Sure to Indicate Whether the Variance Is Favorable

Essay

Porcini Enterprises produces two products, AR and QT. Actual and budgeted information for the year ending April 30 is provided below: $$\begin{array} { l r r r r r r } & { \text { Product AR } } & & { \text { Product QT } } \\ & \text { Budget } & \text { Actual } & & \text { Budget } & \text { Actual } \\\text { Unit sales } & 2,000 & 2,800 & & 6,000 & 5,600 \\\text { Sales } & \$ 6,000 & \$ 7,560 & & \$ 12,000 & \$ 11,760 \\\text { Fixed costs } & 1,800 & 1,900 & & 2,400 & 2,800 \\\text { Variable costs } & 2,400 & 2,800 & & 6,000 & 5,880\end{array}$$
Required:
(Be sure to indicate whether the variance is favorable or unfavorable.)
a. Compute the sales activity variance for each product.
b. Compute the sales mix variance for each product.
c. Compute the sales quantity variance for each product.