An unfavorable flexible budget variance for variable expense

An unfavorable flexible budget variance for variable expenses would indicate that: A. the expenses of the company were less than what they had planned.?? B. more units were actually sold than the company had originally budgeted to sell.?? C. actual variable expenses were higher than the flexible budget variable expenses.?? D. fewer units were actually sold than the company had anticipated.?

Solution

Answer)

My answer is (c).

A flexible budget for variable expenses are prepared that whether variable expenses are spent as that of budgeted or not and increase and decrease in expense must be proportionate with increase or decrease output and any difference i.e more than that proportion will lead to Unfavorable variance.