Flexible-budget variance = $200,000 (F); sales-volume variance = $350,000 (U); sales-mix variance = $300,000 (F); calculate the static-budget variance.
A) $150,000 (U)
B) $300,000 (U)
C) $300,000 (F)
D) $250,000 (F)

Question

Quizplus · Accepted Answer

The static-budget variance is calculated by combining the flexible-budget variance and the sales-volume variance. Here, $200,000 (F) - $350,000 (U) = $150,000 (U).

Flexible-Budget Variance = $200,000 (F); Sales-Volume Variance = $350,000 (U);