Capity Tea Products Has an Exclusive Contract with British Distributors

question 77

Multiple Choice

Capity Tea Products has an exclusive contract with British Distributors. Calamine and Capity are two brands of teas that are imported and sold to retail outlets. The following information is provided for the month of March:

Budgeted and actual fixed corporate-sustaining costs are $1,850 and $2,300, respectively. For the contribution margin, what is the total flexible-budget variance?

• A) $840 favorable
• B) $206 favorable
• C) $634 favorable
• D) $634 unfavorable

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Definitions:

Peritoneal

Relating to the peritoneum, the serous membrane lining the cavity of the abdomen and covering the abdominal organs.

Hemodialysis

A medical procedure where a machine filters wastes and water from the blood, mimicking the function of healthy kidneys.

Membrane

A thin, soft, pliable layer of tissue that lines a tube or cavity, or covers an organ or structure.

Calculi

Hardened deposits of minerals and salts that form in the kidneys or other parts of the urinary tract.