Use the Following Information for the Next 7 Questions

question 30

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 sales price variance was

• A) $720 unfavorable
• B) $540 favorable
• C) $0
• D) $1,200 unfavorable

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Definitions:

Trade Secret

Information, including formulas, practices, designs, instruments, or patterns, that is not generally known or readily ascertainable, and by which a business can obtain an economic advantage over competitors or customers.

Secret Formula

A proprietary method or recipe that is kept hidden to maintain competitive advantage or uniqueness.

Compilation of Information

The process of gathering and organizing data from various sources into a single document or database.

Misappropriation

The unauthorized use or theft of someone else’s property or funds, especially in a manner contrary to their intended purpose.