Corner Cupcakes has the following budgeted amounts for the current month: budgeted sales
In units of 3,500 at a budgeted unit selling price of $5. Actual amounts for the month were as follows: 4,000 units at a unit selling price of $4.80. What is the sales activity variance for Corner Cupcakes for the current month?
A) $2,400 unfavorable
B) $2,400 favorable
C) $2,500 unfavorable
D) $2,500 favorable

Question

Quizplus · Accepted Answer

Sales Activity Variance = (Budgeted volume x Budgeted price) - (Actual volume x Budgeted price) = (3,500 x $5) - (4,000 x $5) = $2,500 favorable

Corner Cupcakes Has the Following Budgeted Amounts for the Current