Use the Following Information for the Next 7 Questions

question 3

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 revenue sales quantity variance was

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

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Definitions:

Reconstructive

Pertaining to surgery aimed at restoring the appearance or function of body parts damaged by trauma, disease, or congenital defects.

Cosmetic

Relating to treatments or products used to enhance or alter the appearance of the body, especially for beauty purposes.

Ablative

Describes treatments aimed at removing or destroying tissue, often used in the context of surgical procedures or cancer therapies.

Elective

Pertaining to a procedure or treatment chosen by the patient or physician that is not urgent but considered beneficial.