The following data are for Parker Corporation for 20X4.

-The total of the sales-activity variances is
A) $8,000 favourable.
B) $8,000 unfavourable.
C) $7,000 favourable.
D) $7,000 unfavourable.

Question

The following data are for Parker Corporation for 20X4.
 
-The total of the sales-activity variances is
A) $8,000 favourable. 
B) $8,000 unfavourable. 
C) $7,000 favourable. 
D) $7,000 unfavourable.

Quizplus · Accepted Answer

The sales-activity variances are favourable when actual sales exceed budgeted sales, and unfavourable when actual sales are less than budgeted sales. In this case, the actual sales are $1,000 more than the budgeted sales, so the sales-activity variances are favourable by $1,000.

The Following Data Are for Parker Corporation for 20X4