Question

A firm budgeted sales of ₹120 lakh but achieved actual sales of ₹100 lakh. Variable cost was budgeted at 60% of sales, and actual cost was 62% of actual sales. Calculate the sales variance and interpret its implication.

A ₹20 lakh adverse
B ₹22 lakh favourable
C ₹18 lakh favourable
D ₹10 lakh adverse
E ₹15 lakh neutral
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