A Machine Distributor Sells Two Models,basic and Deluxe What Is the Sales Activity Variance for the Basic Model

question 98

Multiple Choice

A machine distributor sells two models,basic and deluxe.The following information relates to its master budget.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. $$\begin{array} { | l | r | r | } \hline & \text { Basic } & \text { Deluse } \\\hline \text { Sales (units) } & 8,000 & 2,000 \\\hline \text { Sales price per unit } & \$ 8,000 & \$ 12,000 \\\hline \text { Variable costs per unit } & \$ 6,400 & \$ 9,000 \\\hline\end{array}$$ What is the sales activity variance for the basic model?

• A) $1,280,000.
• B) $1,600,000.
• C) $11,200,000.
• D) $12,800,000.

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Definitions:

Conversation

The informal exchange of ideas, information, and feelings between two or more people through spoken words or written text.

Conflict Theory

focuses on the social and material inequalities of different groups in a society, suggesting that these conflicting interests are the engine of social change.

Actualize Will

The process of making one's desires, intentions, or ambitions a reality through action and determination.

Monopolize Conversation

Dominating a discussion to the extent that others have little to no opportunity to contribute.