Use the Following Information for the Next 7 Questions

question 45

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 variance was

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

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Definitions:

Swerve

To change direction abruptly, often used in driving contexts to avoid an obstacle or collision.

Drive Straight

The action or process of moving a vehicle forward in a direct line without turning.

Nash Equilibrium

A concept within game theory where each player's strategy is optimal given the strategies of all other players, and no player has anything to gain by changing only their own strategy unilaterally.

Press Button

The act of pressing a button to activate or operate a device or machine.