If the standard quantity (SQ), actual quantity (AQ), standard price (SP), and actual price (AP) are 350 units, 400 units, $12, and $13 respectively, then the total budget variance is _____.
A)$1,000 favorable
B)$250 favorable
C)$250 unfavorable
D)$1,000 unfavorable

Question

Quizplus · Accepted Answer

The total budget variance is calculated as (SQ * SP) - (AQ * AP) = (350 * $12) - (400 * $13) = $4,200 - $5,200 = -$1,000, indicating a $1,000 unfavorable variance.

If the Standard Quantity (SQ), Actual Quantity (AQ), Standard Price