Texas Tad's T-shirt Warehouse has a Flexible Budget Variance of $175, favorable and a
Sales Activity Variance of $75, favorable. What is Texas Tad's Master Budget Variance?
A) $100 favorable
B) $250 favorable
C) $250 unfavorable
D) Cannot be determined; not enough information given.

Question

Quizplus · Accepted Answer

Master Budget Variance = Flexible Budget Variance, $150, favorable + Sales Activity Variance, $75, favorable = $250 favorable.

Texas Tad's T-Shirt Warehouse Has a Flexible Budget Variance of $175