Last year sales were 16,400,000 and compensation costs were 1,312,000. Compensation costs for the year were budgeted at 7% of sales. It appears that compensation costs were
A) greater than budgeted.
B) less than budgeted.
C) exactly as budgeted.
D) there is not enough information to tell.

Question

Quizplus · Accepted Answer

Compensation costs were budgeted at 7% of sales, which would be 1,148,000 (16,400,000 * 0.07). Actual compensation costs were 1,312,000, which is greater than the budgeted amount.

Last Year Sales Were 16,400,000 and Compensation Costs Were 1,312,000