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Compute the mix and quantity variance for these data

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Reference no: EM132317574

Question :

A-Zone Media sells two models of e-readers. The budgeted price per unit for the wireless model is $199 and the budgeted price per unit for the wireless and cellular model is $430.

The master budget called for sales of 10,700 wireless models and 2,850 wireless and cellular models during the current year.

Actual results showed sales of 8,200 wireless models, with a price of $235 per unit, and 4,450 wireless and cellular models, with a price of $540 per unit. The standard variable cost per unit is $87 for a wireless model and $195 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: EM132317574

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