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:

Biofeedback Training

A technique that teaches individuals to improve their health and performance by controlling certain bodily processes that normally happen involuntarily, such as heart rate.

Meditation

A technique of turning one’s concentration inward and achieving a slightly changed state of consciousness.

Social Support

The assistance and comfort received from friends, family, and others, crucial for mental and physical health.

Biochemical Activity

The biochemical reactions and processes that take place inside living organisms.