Calculate the correct variances from the following: budgeted sales $78 000; actual sales $83 000; actual direct labour $36 000; budgeted direct labour $40 000.
A) Sales variance $5000 U: direct labour variance $4000 F
B) Sales variance $5000 F: direct labour variance $4000 F
C) Sales variance $5000 F: direct labour variance $4000 U
D) Sales variance $5000 U: direct labour variance $4000 U

Question

Quizplus · Accepted Answer

Sales variance = Actual sales - Budgeted sales= $83,000 - $78,000= $5,000 UDirect labour variance = Actual direct labour - Budgeted direct labour= $36,000 - $40,000= $4,000 F

Calculate the Correct Variances from the Following: Budgeted Sales $78