Compute the correct variances: budgeted sales $156 000: actual sales $117 000. Actual direct materials $62 000: budgeted direct materials $51 000.

Question

Quizplus · Accepted Answer

Sales variance is calculated as actual sales minus budgeted sales, which is $117,000 - $156,000 = -$39,000, indicating an unfavorable variance since actual sales are less than budgeted. Direct materials variance is actual cost minus budgeted cost, which is $62,000 - $51,000 = $11,000, also indicating an unfavorable variance since the actual cost is higher than budgeted.

Compute the Correct Variances: Budgeted Sales $156 000: Actual Sales