Concept- Paradise Company, Interpret Activity Variances
Managerial Accounting
Garrison, Noreen, and Brewer
17th Edition
In this one, the Paradise Company planning budget had 10,000 units and sales of $500,000. The flexible budget for 12,000 units generated sales of $600,000. Determine what the variance of $100,000 is known as (the variance was due only to an increase in unit sales?)