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:

Type A Personality

A temperament characterized by high levels of competitiveness, self-imposed stress, impatience, and urgency.

Stress Reactions

The physical, mental, or emotional responses elicited by individuals when faced with pressure, challenges, or threats.

Heart Disease

A broad term for a range of diseases affecting the heart and blood vessels, including coronary artery disease, arrhythmias, and heart failure.

Type B Personality

A personality type characterized by a relatively relaxed, patient, and easy-going approach to life, unlike the more tense and hurried Type A personality.