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Compute the mix and quantity variance for these data

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Question - A-Zone Media sells two models of e-readers. The budgeted price per unit for the wireless model is $210 and the budgeted price per unit for the wireless and cellular model is $452. The master budget called for sales of 11,800 wireless models and 3,400 wireless and cellular models during the current year. Actual results showed sales of 9,300 wireless models, with a price of $290 per unit, and 5,000 wireless and cellular models, with a price of $760 per unit. The standard variable cost per unit is $98 for a wireless model and $250 for a wireless and cellular model.

Required:

a. Compute the activity variance for these data.

b. Compute the mix and quantity variance for these data.

Reference no: EM131644710

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