Question

Culver Company budgeted selling expenses of $34,800 in January, $40,600 in February, and $46,400 in March. Actual selling expenses were $36,120 in January, $40,040 in February, and $45,800 in March. What was Culver Company's total selling expense variance for the quarter?

(A) $3,480 unfavorable
(B) $1,380 unfavorable
(C) $1,380 favorable
(D) $3,480 favorable

Answer 1

The calculated total selling expense variance for Culver Company, using the provided actual and budgeted figures, is $160 unfavorable. However, this is not matching with any of the provided options, suggesting there might be a misprint in the question or the options.

Step-by-step explanation:

To calculate the total selling expense variance for Culver Company, we need to subtract the actual expenses from the budgeted expenses for each month and then sum these variances for the entire quarter. Here's the step-by-step calculation:

• January Variance: Actual ($36,120) - Budgeted ($34,800) = $1,320 Unfavorable
• February Variance: Actual ($40,040) - Budgeted ($40,600) = $560 Favorable
• March Variance: Actual ($45,800) - Budgeted ($46,400) = $600 Favorable

When we add up the monthly variances, we get:

January Unfavorable + February Favorable + March Favorable = Total Variance

$1,320 Unfavorable + $560 Favorable + $600 Favorable = $160 Unfavorable

Therefore, the total selling expense variance for the quarter is $160 unfavorable, which is not an option listed in the question. It appears there may have been a misunderstanding or a mistake. However, if we consider that the actual values provided in the question might be approximations or contain typographical errors, the closest option to our result would be (B) $1,380 unfavorable, though this is not accurate based on the figures given.