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Ocean Company estimated that April sales would be 150,000 units with an average selling price of $6.00. Actual sales for April were 149,000 units, and average selling price was $6.12. The sales revenue flexible budget variance was: A. $6,120 favorable. B. $17,880 favorable. C. $6,000 unfavorable. D. $17,880 unfavorable.

Respuesta :

Answer:

B. $17,880 favorable.

Explanation:

Sales revenue flexible budget variance = (149,000 units × $6.12 per unit) − (149,000 units × $6.00 per unit)

Sales revenue flexible budget variance = $911,880 − $894,000 = $17,880 favorable

Since actual sales were greater than the flexible budget amount, the variance is favorable.

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