During July,Johnson Company Had Actual Sales of $150,000 Compared to Budgeted

question 86

Multiple Choice

During July,Johnson Company had actual sales of $150,000 compared to budgeted sales of $162,000.Actual cost of goods sold was $105,500,compared to a budget of $108,300.Monthly operating expenses,budgeted at $22,400,totaled $20,000.Interest revenue of $2,000 was earned during July but had not been included in the budget.The performance report for July would show a net income variance of

• A)$9,600 Favorable
• B)$4,800 Favorable
• C)($9,600)Unfavorable
• D)($4,800)Unfavorable

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Definitions:

Perform

To carry out, execute, or conduct (an action or task).

Intrinsic Rewards

Satisfaction a person derives from the activity itself, rather than from any external rewards.

Extrinsic Rewards

Benefits provided by external factors, such as money, grades, or awards, which motivate individuals to perform tasks.

Task Performance

The execution and completion of specific duties or assignments as part of one's role or job responsibilities.