Use the Following Information for the Next 7 Questions

question 74

Multiple Choice

Use the following information for the next 7 questions.
A small accounting firm budgets 200 hours of billings for the next month, and 60% of these hours are expected to be for tax return preparation services, with the remaining 40% for bookkeeping services. Tax work is billed at $50 per hour, and bookkeeping work is billed at $40 per hour. The variable costs for both types of services are $10 per hour. During the month 180 hours were billed, 90 of which were for tax work.
-(Appendix 11A) The contribution margin sales mix variance was

• A) $720 unfavorable
• B) $540 favorable
• C) $900 unfavorable
• D) $180 unfavorable

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Definitions:

Legislative Acts

Laws enacted by a governmental legislative body.

Uniform Statute

A law that is adopted by all states in the United States to bring consistency across state lines in areas where national uniformity is deemed beneficial.

State Legislature

The legislative branch of state government in the United States, responsible for making and passing laws at the state level.

Independent Federal Administrative Agency

A government agency that operates independently of the executive branch, often established by Congress to regulate and oversee specific areas of public administration.