Kaylie assumed the cost of the sales tax on her new (used) vehicle would be around $850. In reality, it was $725. What type of variance does this represent?

1. An unfavorable variance of $850
2. A favorable variance of $125
3. A favorable variance of $850
4. An unfavorable variance of $725

If revenues were higher than expected, or expenses were lower, the variance is favorable. If revenues were lower than budgeted or expenses were higher, the variance is unfavorable.

A favorable variance is where actual income is more than budget, or actual expenditure is less than budget. This is the same as a surplus where expenditure is less than the available income.

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Kaylie assumed the cost of the sales tax on her new (used) vehicle would be around $850. In reality, it was $725. What type of variance does this represent? 1. An unfavorable variance of $850 2. A favorable variance of $125 3. A favorable variance of $850 4. An unfavorable variance of $725

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Kaylie assumed the cost of the sales tax on her new (used) vehicle would be around $850. In reality, it was $725. What type of variance does this represent?

1. An unfavorable variance of $850
2. A favorable variance of $125
3. A favorable variance of $850
4. An unfavorable variance of $725