Identify the unfavourable variance.
A) Budgeted expenses $8 000; actual expenses $8 500
B) Budgeted loss $13 800; actual loss $8 500
C) Budgeted income $10 000; actual income $15 000
D) Budgeted expenses $13 000; actual expenses $11 000

Question

Quizplus · Accepted Answer

An unfavourable variance occurs when actual expenses are higher than budgeted expenses, as seen in option A where actual expenses ($8,500) exceed budgeted expenses ($8,000).

Identify the Unfavourable Variance