Cosmo Cookie Creations had the following variable cost data for the past month:
What is Cosmo Cookie's Flexible Budget Variance and Sales Activity Variance?
A) $600, unfavorable and $300, favorable
B) $600, unfavorable and $300, unfavorable
C) $600, favorable and $300, favorable
D) $600, favorable and $300, unfavorable

Question

Cosmo Cookie Creations had the following variable cost data for the past month:
 What is Cosmo Cookie's Flexible Budget Variance and Sales Activity Variance?
A) $600, unfavorable and $300, favorable 
B) $600, unfavorable and $300, unfavorable 
C) $600, favorable and $300, favorable 
D) $600, favorable and $300, unfavorable

Quizplus · Accepted Answer

Flexible Budget Variance = Actual - Flexible Budget = $4,600 - $5,200 = $600, favorable and Sales Activity Variance = Flexible Budget - Master Budget = $5,200 - $5,500 = $300, favorable.

Cosmo Cookie Creations Had the Following Variable Cost Data for the Past