An unfavorable flexible-budget variance for variable costs may be the result of:
A)using more input quantities than were budgeted
B)paying higher prices for inputs than were budgeted
C)selling output at a higher selling price than budgeted
D)Both A and B are correct.

Question

Quizplus · Accepted Answer

An unfavorable flexible-budget variance for variable costs occurs when actual costs exceed budgeted costs. This can happen if more input quantities are used than budgeted (A) or if higher prices are paid for inputs than budgeted (B).

An Unfavorable Flexible-Budget Variance for Variable Costs May Be the Result