A-Zone Media sells two models of e- readers. The budgeted price per unit for the wireless model is $192 and the budgeted price per unit for the wireless and cellular model is $416. The master budget called for sales of 10,000 wireless models and 2,500 wireless and cellular models during the current year. Actual results showed sales of 7,500 wireless models, with a price of $200 per unit, and 4,000 wireless and cellular models, with a price of $400 per unit. The standard variable cost per unit is $80 for a wireless model and $160 for a wireless and cellular model. a. Compute the activity variance for these data b. Compute the mix and quantity variance for these data

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 9E: Nozama.com Inc. sells consumer electronics over the Internet. For the next period, the budgeted cost...
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A-Zone Media sells two models of e-
readers. The budgeted price per unit for
the wireless model is $192 and the
budgeted price per unit for the wireless
and cellular model is $416. The master
budget called for sales of 10,000 wireless
models and 2,500 wireless and cellular
models during the current year. Actual
results showed sales of 7,500 wireless
models, with a price of $200 per unit, and
4,000 wireless and cellular models, with a
price of $400 per unit. The standard
variable cost per unit is $80 for a wireless
model and $160 for a wireless and cellular
model.
a. Compute the activity variance for these
data
b. Compute the mix and quantity variance
for these data
Transcribed Image Text:A-Zone Media sells two models of e- readers. The budgeted price per unit for the wireless model is $192 and the budgeted price per unit for the wireless and cellular model is $416. The master budget called for sales of 10,000 wireless models and 2,500 wireless and cellular models during the current year. Actual results showed sales of 7,500 wireless models, with a price of $200 per unit, and 4,000 wireless and cellular models, with a price of $400 per unit. The standard variable cost per unit is $80 for a wireless model and $160 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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