Mastering Budgets and Variances

A company had a budgeted sales revenue of $50,000 for the month but actually achieved $60,000. Calculate the variance and state if it is favorable or unfavorable.

• $10,000 Unfavorable

• $10,000 Favorable

• $5,000 Unfavorable

• $5,000 Favorable

If the actual cost of goods sold is $30,000 compared to a budgeted cost of $28,000, what is the variance and is it favorable or unfavorable?

• $2,000 Favorable

• $2,000 Unfavorable

• $1,500 Favorable

• $1,500 Unfavorable

A project had a budgeted expense of $15,000 for materials but only spent $13,500. What is the variance and how would you classify it?

• $1,500 Unfavorable

• $1,500 Favorable

• $2,000 Unfavorable

• $2,000 Favorable

A department's budget for employee training was $4,000, but the actual spending was $4,500. Determine the variance and its nature.

• $500 Favorable

• $500 Unfavorable

• $400 Favorable

• $400 Unfavorable

During a fiscal year, a company anticipated earning $100,000 in revenue but actually earned $120,000. Calculate the revenue variance.

• $20,000 Unfavorable

• $20,000 Favorable

• $15,000 Unfavorable

• $15,000 Favorable

A budgeted amount for office supplies was set at $750. At the end of the period, the actual amount spent was $680. What is the variance and is it favorable or unfavorable?

• $70 Favorable

• $70 Unfavorable

• $80 Favorable

• $80 Unfavorable

If a company had a budgeted gross profit of $50,000 and the actual gross profit was $45,000, what is the variance and how would you interpret it?

• $5,000 Favorable

• $5,000 Unfavorable

• $10,000 Favorable

• $10,000 Unfavorable

A business budgeted $10,000 for marketing expenses but ended up spending $12,000. What is the variance and is it considered favorable or unfavorable?

• $2,000 Favorable

• $2,000 Unfavorable

• $1,500 Favorable

• $1,500 Unfavorable