The sales revenue flexible budget variance was:
A) $15,000 unfavorable.
B) $7,000 favorable.
C) $15,000 favorable.
D) $7,000 unfavorable.

Question

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

Sales revenue flexible budget variance = Actual sales − Flexible budget
Sales revenue flexible budget variance = $835,000 − $820,000 = $15,000
Since actual sales were greater than the flexible budget amount, the variance is favorable.

The Sales Revenue Flexible Budget Variance Was