For the current year,LeBombard Company's static budget sales were $225,000.Actual sales for the current year were $220,000.Actual sales last year were $219,000.Expected sales last year were $225,000.What is the static budget variance for sales in the current year?
A) $5,000 Favorable
B) $5,000 Unfavorable
C) $6,000 Favorable
D) $6,000 Unfavorable

Question

Quizplus · Accepted Answer

Static budget variance for sales = Actual sales - Static budget sales
= $220,000 - $225,000
= -$5,000
Since the actual sales were lower than the static budget sales, the variance is unfavorable. Option B is the correct answer as it reflects a static budget variance of $5,000 unfavorable.

For the Current Year,LeBombard Company's Static Budget Sales Were $225,000