Virginia Enterprises Produces Two Products, Standard and Deluxe Required:
(Be Sure to Indicate Whether the Variance Is Favorable

Essay

Virginia Enterprises produces two products, Standard and Deluxe. Actual and budgeted information for the year is provided below: $$\begin{array} { l r r l l l } &{ \text { Standard } } & & { \text { Deluxe } } \\ & \text { Budget } & \text { Actual } & \text { Budget } & \text { Actual } \\\text { Unit sales } & 4,000 & 5,600 & 12,000 & 11,200 \\\text { Sales } & \$ 6,000 & \$ 7,560 & \$ 12,000 & \$ 11,760 \\\text { Variable costs } & 2,400 & 2,800 & \$ 6,000 & 5,800\end{array}$$
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.