Olivet Devices sells two models of fitness devices. The budgeted price per unit for the wireless model is $38 and the budgeted price per unit for the wireless and cellular model is $83. The master budget called for sales of 40,000 wireless models and 10,000 wireless and cellular models during the current year. Actual results showed sales of 31,000 wireless models, with a price of $35 per unit, and 12,000 wireless and cellular models, with a price of $80 per unit. The standard variable cost per unit is $25 for a wireless model and $60 for a wireless and cellular model. Required: a. Compute the sales activity variance for these data. . Break down the sales activity variance into mix and quantity parts. Complete this question by entering your answers in the tabs below. Required A Required B Compute the sales activity variance for these data. (Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.)

Olivet Devices sells two models of fitness devices. The budgeted price per unit for the wireless model is $38 and the budgeted price per unit for the wireless and cellular model is $83. The master budget called for sales of 40,000 wireless models and 10,000 wireless and cellular models during the current year. Actual results showed sales of 31,000 wireless models, with a price of $35 per unit, and 12,000 wireless and cellular models, with a price of $80 per unit. The standard variable cost per unit is $25 for a wireless model and $60 for a wireless and cellular model. Required: a. Compute the sales activity variance for these data. . Break down the sales activity variance into mix and quantity parts. Complete this question by entering your answers in the tabs below. Required A Required B Compute the sales activity variance for these data. (Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.)

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter8: Budgeting For Planning And Control

Section: Chapter Questions

Problem 6CE: Play-Disc makes Frisbee-type plastic discs. Each 12-inch diameter plastic disc has the following...

See similar textbooks

Similar questions

Sunrise Poles manufactures hiking poles and is planning on producing 4,000 units in March and 3,700 in April. Each pole requires a half pound of material, which costs $1.20 per pound. The companys policy is to have enough material on hand to equal 10% of the next months production needs and to maintain a finished goods inventory equal to 25% of the next months production needs. What is the budgeted cost of purchases for March?
Lens Junction sells lenses for $45 each and is estimating sales of 15,000 units in January and 18,000 in February. Each lens consists of 2 pounds of silicon costing $2.50 per pound, 3 oz of solution costing $3 per ounce, and 30 minutes of direct labor at a labor rate of $18 per hour. Desired inventory levels are: Â Prepare a sales budget, production budget. direct materials budget for silicon and solution, and a direct labor budget.
Nozama.com Inc. sells consumer electronics over the Internet. For the next period, the budgeted cost of the sales order processing activity is 250,000 and 50,000 sales orders are estimated to be processed. a. Determine the activity rate of the sales order processing activity. b. Determine the amount of sales order processing cost associated with 30,000 sales orders.
Play-Disc makes Frisbee-type plastic discs. Each 12-inch diameter plastic disc has the following manufacturing costs: For the coming year, Play-Disc expects to make 300,000 plastic discs, and to sell 285,000 of them. Budgeted beginning inventory in units is 16,000 with unit cost of 4.75. (There are no beginning or ending inventories of work in process.) Required: 1. Prepare an ending finished goods inventory budget for Play-Disc for the coming year. 2. What if sales increased to 290,000 discs? How would that affect the ending finished goods inventory budget? Calculate the value of budgeted ending finished goods inventory.
Sara’s Systems manufactures audio systems for cars. Two models are produced: The Standard model has a budgeted price of $235 and a standard variable cost of $115. The Blaster model has a budgeted price of $515 and a standard variable cost of $195. At the beginning of the year, Sara estimated that she would sell 6,140 Blaster models and 24,560 Standard models. The actual results for the year showed that 7,460 Blaster models were sold for total revenues of $3,516,200. A total of 27,000 Standard models were sold for revenues of $7,120,000. Required: a. Compute the activity variance for the year. b. Compute the mix and quantity variances for the year.
Fisher-Price manufactures two products, Bassinet and Swing, which use raw materials, pins and clips. One bassinet uses 4 units of pins and 3 units of clips. One swing uses 2 units of pins and 6 units of clips. One pin is expected to cost $7 and one clip is expected to cost $5. Sales and finished goods inventory budget for the year 2020 are as follows: Bassinets Swings Budgeted sales 5,000 units Budgeted sales 7.000 units Opening inventory 1,000 units Opening inventory 2,000 units Closing inventory 600 units Closing inventory 800 units Selling price $400 Selling price $300 Raw material inventory budget for the year 2020 are as follows: Pins Clips Opening inventory 2,400 units Opening inventory 3,300 units Closing inventory 500 units Closing inventory 600 units The warehouse and stores managers have suggested that a provision should be made for damages and deterioration of items held in store, as…
Glacier Trails manufactures backpacks for adventurers. The backpacks come in two types: Daytripper, and Excursion. Glacier anticipates the following sales volumes for the coming period: Daytripper: 2,400 backpacks Excursion: 1,440 backpacks If total budgeted revenue for the period is $300,000 and the sales price for Daytripper backpacks is $62, what is the budgeted sales price for Excursion backpacks? Select one: O a. $105 O b. $146 O O O c. $78 d. $156 e. None of these options are correct.
Olivet Devices sells two models of fitness devices. The budgeted price per unit for the wireless model is $47 and the budgeted price per unit for the wireless and cellular model is $92. The master budget called for sales of 47,200 wireless models and 11,800 wireless and cellular models during the current year. Actual results showed sales of 35,500 wireless models, with a price of $44 per unit, and 14,700 wireless and cellular models, with a price of $89 per unit. The standard variable cost per unit is $34 for a wireless model and $69 for a wireless and cellular model. Required: a. Compute the sales activity variance for these data. b. Break down the sales activity variance into mix and quantity parts.
During the current year, Mute Corporation expected to sell 24,700 telephone switches. Fixed costs for the year were expected to be $12,147,500, the unit sales price was budgeted at $3,550, and unit variable costs were budgeted at $1,720. Mute's margin of safety (MOS) in units is
Magnus, Inc. manufactures bedding sets. The budgeted production is for 61,000 comforters this year. Each comforter requires 6.5 yards of material. The estimated January 1 beginning inventory is 29,000 yards with the desired ending balance of 36,000 yards of material. The material costs $4.50 per yard. Determine the materials budget for the year. Plus Less Total Total Unit price (per Total req'd for inventory inventory to be to be MAGNUS, INC. Direct Materials Purchases Budget For the Year Ending December 31, 20Y9 : X $ $
The Fortise Corporation manufactures two types of vacuum cleaners, the Victor for commercial building use and the House - Mate for residences. Budgeted and actual operating data for the year 2020 were as follows Static Budget Victor House-Mate Total 6,600 $1,560,000 27,000 $3,140,000 Number sold 33,600 $4,700,000 Contribution margin Actual Results Victor House-Mate Total Number sold Contribution margin 5,400 $1,400,000 38,000 $4,130,000 43,400 $5,530,000 What is the total flexible - budget variance in terms of the contribution margin? (Round intermediary calculations to the nearest dollar.) A. $4,408,000 unfavorable O B. $152,400 unfavorable O C. $1,274.400 favorable O D. $152,400 favorable
Home Town Company manufactures recliners. The budgeted sales price is $613 per recliner, the variable costs are $330 per recliner, and budgeted fixed costs are $20,000. What is the budgeted operating income for 2,000 recliners?