Use the information below to answer the following question(s).Special Tea Products (STP)has an exclusive contract with Tea Distributors.Two brands of Teas are imported, Strong and Mild, and sold to retail outlets.The monthly budget for the contract is based on a combination of last year's performance, a forecast of general industry sales, and the company's expected share of the Canadian market for imported Tea.The following information is provided for the month of May:
Budgeted fixed costs are $1,750.Actual fixed costs are $2,000.
-What is the STP total flexible-budget variance for revenues?

Question

Use the information below to answer the following question(s).Special Tea Products (STP)has an exclusive contract with Tea Distributors.Two brands of Teas are imported, Strong and Mild, and sold to retail outlets.The monthly budget for the contract is based on a combination of last year's performance, a forecast of general industry sales, and the company's expected share of the Canadian market for imported Tea.The following information is provided for the month of May:
  Budgeted fixed costs are $1,750.Actual fixed costs are $2,000.
-What is the STP total flexible-budget variance for revenues?

Quizplus · Accepted Answer

The question only provides information on fixed costs and no information on actual revenues or flexible budgeted revenues, so it is impossible to calculate the flexible-budget variance for revenues. Therefore, the answer is (B) "Cannot be determined."

Use the Information Below to Answer the Following Question(s)