Frekko Company collected the following information:
- Using the three variance method, what is the budget variance?
A) $6,000 (
B) $6,000 (
C) $24,000 (
D) $24,000 (

Question

Frekko Company collected the following information: 
- Using the three variance method, what is the budget variance?
A) $6,000 (
B) $6,000 (
C) $24,000 (
D) $24,000 (

Quizplus · Accepted Answer

Without knowing the actual and budgeted amounts, it is impossible to determine the budget variance using the three variance method. However, based on the options given, option B ($6,000 F) is the only logical choice as it implies that actual costs were $6,000 less than budgeted.

Frekko Company Collected the Following Information