Olivet Devices sells two models of fitness devices. The budgeted price per unit for the wireless model is $45 and the budgeted price per unit for the wireless and cellular model is $90. The master budget called for sales of 45,600 wireless models and 11,400 wireless and cellular models during the current year. Actual results showed sales of 34,500 wireless models, with a price of $42 per unit, and 14,100 wireless and cellular models, with a price of $87 per unit. The standard variable cost per unit is $32 for a wireless model and $67 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. 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.) Activity variance < Required A Required B >

Olivet Devices sells two models of fitness devices. The budgeted price per unit for the wireless model is $45 and the budgeted price per unit for the wireless and cellular model is $90. The master budget called for sales of 45,600 wireless models and 11,400 wireless and cellular models during the current year. Actual results showed sales of 34,500 wireless models, with a price of $42 per unit, and 14,100 wireless and cellular models, with a price of $87 per unit. The standard variable cost per unit is $32 for a wireless model and $67 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. 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.) Activity variance < Required A Required B >

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 1PA: Lens Junction sells lenses for $45 each and is estimating sales of 15,000 units in January and...

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.
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.
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…
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.
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.
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?
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 $ $
Alger Inc. manufactures six models of leaf blowers and weed eaters. Alger's budgeting team is finalizing the sales budget for the coming year. Sales in units and dollars for last year follow: Product Number Sold Price ($) Revenue LB-1 14,700 32 $ 470,400 LB-2 18,000 20 360,000 WE-6 25,200 15 378,000 WE-7 16,200 10 162,000 WE-8 6,900 18 124,200 WE-9 4,000 22 88,000 Total $1,582,600 In looking over the previous year's sales figures, Alger's sales budgeting team recalled the following: Model LB-1 is a newer version of the leaf blower with a gasoline engine. The LB-1 is mounted on wheels instead of being carried. This model is designed for the commercial market and did better than expected in its first year. As a result, the number of units of Model LB-1 to be sold was forecast at 325% of the previous year's units. Models WE-8 and WE-9 were introduced on July 1 of last year. They are lighter versions of the traditional weed eater and are designed for…
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
During the current year, Mute Corporation expected to sell 24,600 telephone switches. Fixed costs for the year were expected to be $12,147,000, the unit sales price was budgeted at $3,500, and unit variable costs were budgeted at $1,680. Mute's margin of safety (MOS) in units is Multiple Choice O O 17,925. 21,705. 23,015. 19,095. 17,795.
Magnolia, Inc., manufactures bedding sets. The budgeted production is for 25,100 comforters this year. Each comforter requires 7 yards of material. The estimated January 1 beginning inventory is 5,620 yards with the desired ending balance of 5,400 yards of material. If the material costs $6.10 per yard, determine the materials budget for the year.