A Machine Distributor Sells Two Models, Basic and Deluxe Actual Sales Were 7,000 Basic Models and 2,800 Deluxe Models

question 11

Multiple Choice

A machine distributor sells two models, basic and deluxe. The following information relates to its master budget.
$$\begin{array} { l c c } & \text { Basic } & \text { Deluxe } \\\text { Sales (units) } & 8,000 & 2,000 \\\text { Sales price per unit } & \$ 8,000 & \$ 12,000 \\\text { Variable costs per unit } & \$ 6,400 & \$ 9,000\end{array}$$
Actual sales were 7,000 basic models and 2,800 deluxe models. The actual sales prices were the same as the budgeted sales prices for both models.
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What is the sales activity variance for the deluxe model?

• A) $400,000.
• B) $800,000.
• C) $1,600,000.
• D) $2,400,000.

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Definitions:

Hyaline Cartilage

A translucent, bluish-white type of cartilage present in the joints, respiratory tract, and other sites, providing a smooth surface for joint movement as well as support and flexibility.

Fibrocartilage

A type of cartilage with a dense interwoven network of collagen fibers, providing strong support and resisting pressure.

Active Range

The range of motion of a joint or muscle that can be achieved through muscular contraction without external assistance.

Knee Joint

A complex hinge joint in the leg that connects the thigh bone (femur) to the shin bone (tibia), enabling flexion and extension movements.