For the current year,John Company's static budget sales were $225,000.Actual sales for the current year were $220,000.Actual sales last year were $219,000.Expected sales last year were $225,000.What is the static budget variance for sales in the current year?
A)$5,000 Favorable
B)$5,000 Unfavorable
C)$6,000 Favorable
D)$6,000 Unfavorable

Question

Quizplus · Accepted Answer

The static budget variance can be calculated as:
Static Budget Sales - Actual Sales
= $225,000 - $220,000
= $5,000 unfavorable
Since the actual sales are less than the static budget sales, it is unfavorable. Therefore, the answer is B.

For the Current Year,John Company's Static Budget Sales Were $225,000