Exercise 17-30 (Static) Sales Mix and Quantity Variances (LO 17-4) 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.. b. Break down the sales activity variance into mix and quantity parts Answer is complete but not entirely correct.

Exercise 17-30 (Static) Sales Mix and Quantity Variances (LO 17-4) 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.. b. Break down the sales activity variance into mix and quantity parts Answer is complete but not entirely correct.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter18: Pricing And Profitability Analysis

Section: Chapter Questions

Problem 20E: Eastman, Inc., manufactures and sells three products: R, S, and T. In January, Eastman, Inc.,...

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