Answer the following questions using the information below:
Shaghai Tea Products has an exclusive contract with British Distributors. Calamine and Shanghai are two brands of teas that are imported and sold to retail outlets. The following information is provided for the month of March:
Budgeted and actual fixed corporate-sustaining costs are $1,750 and $2,000, respectively.
-For the contribution margin, what is the total flexible-budget variance?
A)$300 favorable
B)$1,900 unfavorable
C)$500 favorable
D)$800 unfavorable

Question

Answer the following questions using the information below:
Shaghai Tea Products has an exclusive contract with British Distributors. Calamine and Shanghai are two brands of teas that are imported and sold to retail outlets. The following information is provided for the month of March:
  Budgeted and actual fixed corporate-sustaining costs are $1,750 and $2,000, respectively.
-For the contribution margin, what is the total flexible-budget variance?
A)$300 favorable 
B)$1,900 unfavorable 
C)$500 favorable 
D)$800 unfavorable

Quizplus · Accepted Answer

The flexible budget variance for contribution margin can be calculated as actual contribution margin - flexible budget contribution margin. The information given in the scenario does not provide any data about the actual and flexible budget contribution margin. Hence, it is not possible to calculate the flexible budget variance. Therefore, the answer is B because none of the options fit the information given.

Answer the Following Questions Using the Information Below