Saffold Corporation has provided the following data for December.

-The budget variance for December is:
A)$10,050 U
B)$6,540 U
C)$6,540 F
D)$10,050 F

Question

Saffold Corporation has provided the following data for December.

-The budget variance for December is:
A)$10,050 U 
B)$6,540 U 
C)$6,540 F 
D)$10,050 F

Quizplus · Accepted Answer

The budget variance is calculated as the difference between the actual and budgeted amounts. A negative variance (U for unfavorable) indicates that actual expenses were higher than budgeted, or actual revenues were lower than budgeted. Here, $10,050 U suggests an unfavorable variance of $10,050.

Saffold Corporation Has Provided the Following Data for December