An unfavorable flexible budget variance for variable expenses would indicate that:
A)fewer units were actually sold than the company had anticipated.
B)the expenses of the company were less than what they had planned.
C)more units were actually sold than the company had originally budgeted to sell.
D)actual variable expenses were higher than the flexible budget variable expenses.

Question

Quizplus · Accepted Answer

An unfavorable flexible budget variance for variable expenses means that the actual variable expenses were higher than what the company had budgeted for in its flexible budget. This could be due to multiple factors such as an increase in material costs, increased labor cost, or higher utility expenses.

An Unfavorable Flexible Budget Variance for Variable Expenses Would Indicate