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AAA Electronics sells two models of tablet computers. The budgeted price per unit for the wireless model is $120 and the budgeted price per unit for the wireless and cellular model is $260. The master budget called for sales of 20,000 wireless models and 5,000 wireless and cellular models during the current year. Actual results showed sales of 15,000 wireless models, with a price of $125 per unit, and 8,000 wireless and cellular models, with a price of $250 per unit. The standard variable cost per unit is $50 for a wireless model and $100 for a wireless and cellular model.

(a) Compute the activity variance for these data.
(b) Compute the mix and quantity variance for these data.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M945526

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