If the total sales- activity variance was $7,500 favorable, and the total master budget variance was $10,000 favorable, then the total flexible budget variance must have been:
A) $2,500 unfavorable
B) $2,500 favorable
C) $17,500 favorable
D) indeterminable

Question

Quizplus · Accepted Answer

The total flexible budget variance is the difference between the total master budget variance and the total sales-activity variance. Therefore, the total flexible budget variance is $10,000 - $7,500 = $2,500 favorable.

If the Total Sales- Activity Variance Was $7,500 Favorable, and the Total