Commando Force is a new set of children’s action toys consisting of three separately sol...

Commando Force is a new set of children’s action toys consisting of three separately sold pieces: Matt, Kim, and the multi-terrain vehicle (MTV). The MTV can be used by itself or it can hold either Matt or Kim or both. With male and female action figures, Commando Force toys are targeted at both boys and girls aged 7 to 11. Commando Force is sold to wholesalers who sell to toy stores, chains, and discount stores.

The first calendar quarter (January-March) tends to be very slow because it follows the holidays. Here are budgeted and actual sales data for the first quarter.

Required:

a. Calculate the price and quantity variances for each separately sold toy and all the toys.

b. Calculate the mix and sales variances for each separately sold toy and all the toys.

c. Write a short memo interpreting to management the variances in (a) and (b).