A machine distributor sells two models, basic and deluxe. The following information relates to its master budget.
|
Basic
|
Deluxe
|
|
Sales (units)
|
8,000
|
2,000
|
|
Sales price per unit
|
$8,000
|
$12,000
|
|
Variable costs per unit
|
$6,400
|
$9,000
|
Actual sales were 7,000 basic models and 2,800 deluxe models. The actual sales prices were the same as the budgeted sales prices for both models.
1. What is the sales activity variance for the basic model?
$1,280,000 - $1,600,000 - $11,200,000 - $12,800,000
- Is the sales activity variance for the basic model favorable or unfavorable?
- What is the sales activity variance for the deluxe model?
$400,000 - $800,000 - $1,600,000 - $2,400,000
2. What is the sales mix variance for the basic model?
$256,000 - $1,344,000 - $2,520,000 - $1,600,000
3.What is the sales quantity variance for the basic model?
$120,000 - $256,000 - $1,344,000 - $1,600,000
- What is the sales mix variance for the deluxe model based?
$1,176,000 - $1,344,000 - $2,400,000 - $2,520,000
- Is the sales mix variance for the deluxe model favorable or unfavorable?
- What is the sales quantity variance for the deluxe model?
$120,000 - $256,000 - $1,344,000 - $1,600,000
4.Is the sales quantity variance for the basic model favorable or unfavorable?