Given planning budget revenue of $284,000, actual revenue of $275,000, and flexible budget revenue of $290,000, there is a(n) activity variance.

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22-03-2022
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Given planning budget revenue of $284,000, actual revenue of $275,000, and flexible budget revenue of $290,000, there is a(n) activity variance.

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Parrain Parrain · Answer 1 · 2022-03-29T11:09:03+02:00

Based on the given planning budget revenue and the actual revenue, there is a Favorable activity variance.

Why is the activity variance favorable?

When the Flexible budget revenue is higher than the planning budget revenue, it means that there is a favorable activity variance.

In this scenario, the flexible budget is $290,000 which is more than the planning budget revenue of $284,000 so the activity variance must be favorable .

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