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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.
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