If the flexible- budget variance was $5,500 favorable, and the sales- activity variance was $3,000 favorable, the total master budget variance was:
A) $8,500 favorable
B) $2,500 favorable
C) $8,500 unfavorable
D) $2,500 unfavorable

Question

Quizplus · Accepted Answer

The total master budget variance is the sum of the flexible-budget variance and the sales-activity variance. In this case, the flexible-budget variance is $5,500 favorable and the sales-activity variance is $3,000 favorable, so the total master budget variance is $5,500 + $3,000 = $8,500 favorable.

If the Flexible- Budget Variance Was $5,500 Favorable, and the Sales-