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

question 108

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.
-
Is the sales quantity variance for the basic model favorable or unfavorable?

• A) Favorable.
• B) Unfavorable.

---

Definitions:

Individual Premiums

Payments made periodically to an insurance company by individuals to maintain their policy and coverage.

Patient Protection

Measures, laws, and policies designed to safeguard patients' rights and well-being in healthcare settings.

Affordable Care Act

A health care reform law enacted in March 2010, aimed at expanding insurance coverage, reducing health care costs, and improving health care delivery systems in the United States.

Canadian-Style

Refers to the healthcare system in Canada that is publicly funded and provides coverage to all Canadian citizens and permanent residents.