If actual sales are $38 000 and budgeted sales are $42 000 and actual rent paid is $7300 and budgeted rent is $8100 the variances are respectively:

Question

Quizplus · Accepted Answer

Sales variance = Actual sales - Budgeted sales
= $38 000 - $42 000
= $4000 U (Unfavorable)

Rent variance = Budgeted rent - Actual rent
= $8100 - $7300
= $800 F (Favorable)

Therefore, the answer is B) $4000 U: $800 F.

If Actual Sales Are $38 000 and Budgeted Sales Are