Reference no: EM132681179

Question - Sara's Systems manufactures audio systems for cars. Two models are produced: The Standard model has a budgeted price of $165 and a standard variable cost of $45. The Blaster model has a budgeted price of $445 and a standard variable cost of $125. At the beginning of the year, Sara estimated that she would sell 5,860 Blaster models and 23,440 Standard models. The actual results for the year showed that 7,030 Blaster models were sold for total revenues of $3,304,100. A total of 25,700 Standard models were sold for revenues of $5,140,000.

Required -

a. Compute the activity variance for the year.

b. Compute the mix and quantity variances for the year.