Question

1.)

Designate whether each variance is favorable or unfavorable

-       A.       B.	Buehler's adminstrative expense variance
-       A.       B.	Getty's total revenue activity variance
-       A.       B.	Getty's total expense activity variance
-       A.       B.	Kaylar's revenue variance
-       A.       B.	Kaylar's total expense spending variance
-       A.       B.	Kaylar's total expense activity variance
-       A.       B.	Kaylar's total revenue activity variance
-       A.       B.	Kaylars total net operating income activity variance

A.	favorable
B.	unfavorable

2.) An unfavorable expense spending variance is bad.

True

False

3.) A favorable revenue activity variance is good and an unfavorable revenue activity variance is bad.

True

False  

4.)An favorable expense activity variance is good and an unfavorable activity variance is bad.

True

False

5.)A favorable revenue variance means we sold more units than expected.

True

False

Answer 1

Q 1 is incomplete

2)True. An unfavorable expense spending variance means actual expense is more than standard variance, therefore bad.

3)True.A favorable revenue activity variance means higher actual revenue than budgeted, therefore good. A unfavorable revenue activity variance means lower actual revenue than budgeted, therefore bad.

4)True. A favorable expense activity variance means lower actual expense than budgeted, therefore good. A unfavorable expense activity variance means higher actual expense than budgeted, therefore bad.

5) True. A favorable Revenue variance means we sold more units than expected. But it could also mean Sales at higher Actual Rate than Budgeted Rate.