Century Company has the following information for the past month:
Century's Comprehensive Sales Activity Variance is
A) $2,000 favorable.
B) $2,000 unfavorable.
C) $1,000 favorable.
D) $1,000 unfavorable.

Question

Century Company has the following information for the past month:
 Century's Comprehensive Sales Activity Variance is
A) $2,000 favorable. 
B) $2,000 unfavorable. 
C) $1,000 favorable. 
D) $1,000 unfavorable.

Quizplus · Accepted Answer

Comprehensive Sales Activity Variance = Flexible Budget Contribution Margin - Master Budget Contribution Margin = [($54,000 - $23,000) - ($50,000 - $21,000)] = $31,000 - $29,000 = 2,000, favorable

Century Company Has the Following Information for the Past Month