6. Which account or accounts have an unfavorable variance above $100 during the month?
Answer: A,B
Revenue and utilities expense, and Cost of goods sold have an unfavorable variance above $100 during the month.
Both Revenue and utilities expense, as well as Cost of goods sold, experienced unfavorable variances exceeding $100, indicating that these accounts did not perform as anticipated during the month.
A) Revenue and utilities expense
This option is correct as both accounts reported an unfavorable variance above $100. An unfavorable variance in revenue suggests that actual revenue was less than budgeted, while an unfavorable variance in utilities expense indicates higher costs than planned, both of which are critical for financial analysis.
B) Cost of goods sold
While this option is relevant, it is only partially correct here since it does not include the utilities expense. Cost of goods sold can indeed have an unfavorable variance, but without the combination with the utilities expense, it does not fully address the question of which accounts had unfavorable variances above $100.
C) Salaries and insurance
This option is incorrect as it does not include any accounts that were mentioned in the question context. If salaries or insurance had unfavorable variances, they were not specified, making this choice irrelevant in the context of identifying accounts with significant variances.
D) Revenue and cost of goods sold
This option includes revenue, which is correct, but it misses the utilities expense that also had an unfavorable variance above $100. Therefore, while it identifies one appropriate account, it fails to encompass all relevant accounts as required by the question.
Conclusion
The correct answer includes both Revenue and utilities expense as they both had unfavorable variances exceeding $100, providing a comprehensive view of the accounts in question. Options B, C, and D fail to capture the complete context by either omitting significant accounts or not aligning with the specified criteria of exceeding $100. Thus, A effectively represents the accounts with the unfavorable variances required by the question.