Calculate the Correct Variances from the Following: Budgeted Sales $78

question 4

Multiple Choice

Calculate the correct variances from the following: budgeted sales $78 000; actual sales $83 000; actual direct labour $36 000; budgeted direct labour $40 000.

• A) Sales variance $5000 U: direct labour variance $4000 F
• B) Sales variance $5000 F: direct labour variance $4000 F
• C) Sales variance $5000 F: direct labour variance $4000 U
• D) Sales variance $5000 U: direct labour variance $4000 U

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Definitions:

Depreciation Expense

An accounting method of allocated the cost of a tangible or physical asset over its useful life, representing how much of the asset's value has been used up.

Total Asset Turnover

A measure assessing the productivity of a company's assets in producing sales revenue.

Net Sales

The amount of sales generated by a company after deducting returns, allowances for damaged or missing goods, and discounts.

Average Total Assets

This is a measure used to evaluate a company's asset efficiency by calculating the average total assets over a specific period.