Answer the following questions using the information below:
Manash Company manufactures tires. Some of the company's data was misplaced. Use the following information to replace the lost data:

-What is the total flexible-budget variance (D)?
A)$240 unfavorable
B)$0
C)$1,360 favorable
D)$6,640 favorable

Question

Answer the following questions using the information below:
Manash Company manufactures tires. Some of the company's data was misplaced. Use the following information to replace the lost data:
 
-What is the total flexible-budget variance (D)?
A)$240 unfavorable 
B)$0 
C)$1,360 favorable 
D)$6,640 favorable

Quizplus · Accepted Answer

The total flexible-budget variance is the sum of the sales-volume variance and the sales-mix variance. The sales-volume variance is $6,400 favorable, and the sales-mix variance is $240 unfavorable. Therefore, the total flexible-budget variance is $6,640 favorable.

Answer the Following Questions Using the Information Below