Fle Edit View History Bookmarks People Window Help M Chapter 17 - Homework (16,
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Fle Edit View History Bookmarks People Window Help M Chapter 17 - Homework (16, 2 x c ezto.mheducation.com/hm.tpx bs * Bookmarks a Amazon.com: Online. Lending Club Login PSECU - One of the.. MCNN.com - Breaking vale 1.00 points Exercise 17-20 Sales Mix and Quantity Variances (LO 17-3) Renee's Rings manufactures college rings. Two models are produced: The Spirit model with a budgeted prion of $690 and a standard variable cost of $290. The Chancellor model has a budgeted price of $1,200 and a standard variable cost of S490. At the beginning of the year, Renee estimated that she would soll 1,100 Chancellor rings and 8,900 Spirit rings. The actual results for the year showed that 1,500 Chancellor ings were sold for total revenues of $1,710,000. A total of 9,600 Spirit rings were sold for revenues of $6,004,000. Required: (a) Compute the activity variance for Renee's Rings for the year. (Indicate the effect of each variance by selecting "F" for favorable, "u" for unfavorable, and "None" for no effect (i.e., zero variance). Do not round your intermediate calculations.) Activity variance (b) Compute the mix and quantity variances for the year. (Indicate the effect of each variance by selecting for favorable, u for unfavorable, and "None" for no effect (i.e., zero variance). Do not round your intermediate calculations.) Max variance Quantity varianceExplanation / Answer
Renee's Ring Model Bugeted Quanity*Budgeted Margin Revised Actual Qaunity*Budgted Margin Actual Qauntity*Budgeted Margin Actual Quantity*Actual Margin Spirit 8900 590 5251000 9879 590 5828610 9600 590 5664000 9600 150 5904000 Chancellor 1100 1290 1419000 1221 1290 1575090 1500 1290 1935000 1500 80 1710000 10000 6670000 11100 7403700 11100 7599000 11100 230 7614000 Quanity Variance Mix Variance Price Variance =6670000-7403700 =7403700-7599000 =7599000-7614000 -733700 Favourable -195300 Favourable -15000 Unfavourable Volume Variance -929000 Favourable Activity variance =Volume variance+Price variance OR Activity variance =Budgeted quanity*Budgeted price-Actual quanity*actual Price Activity variance = 6670000-7614000 -944000 We appreciate the rating of our answers Thank You
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