$$\begin{array} { l r c }
\text { Item to Classify } & \text { Starddard } & \text { Actual } \
\text { Sales Reveruse } & 820,000 & 835,000 \
\text { Wages } & 125,000 & 128,000 \
\text { S\&A Expenses } & 400,000 & 408,000 \
\text { Cost of Goods Sold } & 608,000 & 600,000
\end{array}$$ The sales revenue flexible budget variance was:
A) $15,000 unfavorable.
B) $7,000 favorable.
C) $15,000 favorable.
D) $7,000 unfavorable.

Question

$$\begin{array} { l r c } 
\text { Item to Classify } & \text { Starddard } & \text { Actual } \
\text { Sales Reveruse } & 820,000 & 835,000 \
\text { Wages } & 125,000 & 128,000 \
\text { S\&A Expenses } & 400,000 & 408,000 \
\text { Cost of Goods Sold } & 608,000 & 600,000
\end{array}$$ The sales revenue flexible budget variance was:
A) $15,000 unfavorable.
B) $7,000 favorable.
C) $15,000 favorable.
D) $7,000 unfavorable.

Quizplus · Accepted Answer

The sales revenue flexible budget variance is calculated as the actual sales revenue minus the standard (or budgeted) sales revenue. In this case, it's $835,000 (actual) - $820,000 (standard) = $15,000, which is favorable because the actual revenue exceeded the standard.

The Sales Revenue Flexible Budget Variance Was: A) $15,000 Unfavorable

The Sales Revenue Flexible Budget Variance Was:
A) $15,000 Unfavorable