At the end of February,Brayden Pty Ltd reviewed its performance for the month and noted the following:
$\begin{array}{|l|r|r|}
\hline \text{ Account } & \text{ Budget } & \text{ Actual } \
\hline \text{ Sales }& \$ 125000 & \$ 132000 \
\hline\text{ Advertising expense} & \$ 5000 &\$ 3800\
\hline\text{ Wages expense }&\$ 12000 &\$ 13500 \
\hline
\end{array}$
The respective variances will be reported as:

Question

At the end of February,Brayden Pty Ltd reviewed its performance for the month and noted the following:
$\begin{array}{|l|r|r|}
\hline \text{ Account } & \text{ Budget } & \text{ Actual } \
\hline \text{ Sales }& \$ 125000  & \$ 132000 \
\hline\text{ Advertising expense} & \$ 5000  &\$ 3800\
\hline\text{  Wages expense }&\$ 12000  &\$ 13500 \
\hline
\end{array}$ 
The respective variances will be reported as:

Quizplus · Accepted Answer

Sales variance = Actual - Budget = $132,000 - $125,000 = $7,000 F (favorable because actual sales are higher than budgeted).Advertising expense variance = Budget - Actual = $5,000 - $3,800 = $1,200 F (favorable because actual expenses are lower than budgeted).Wages expense variance = Actual - Budget = $13,500 - $12,000 = $1,500 U (unfavorable because actual expenses are higher than budgeted).

At the End of February,Brayden Pty Ltd Reviewed Its Performance