In September, Larson Inc

question 35

Multiple Choice

In September, Larson Inc. sold 40,000 units of its only product for $240,000, and incurred a total cost of $225,000, of which $25,000 was fixed costs. The flexible budget for September showed total sales of $300,000. Among variances of the period were: total variable cost flexible-budget variance, $8,000U; total flexible-budget variance, $63,000U; and, sales volume variance, in terms of contribution margin, $27,000U.

The budgeted fixed cost for September, to the nearest dollar, was:

• A) $30,000.
• B) $45,000.
• C) $71,000.
• D) $78,000.
• E) $93,000.

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Definitions:

Recredited Account

Refers to a financial account that has had funds added back, usually following a return or correction of a previous transaction error.

Customer's Death

refers to the event of a customer dying, potentially affecting their ongoing contracts and the legal obligations or rights of the entities they were engaged with.

Deceased Customer

A deceased customer refers to an account holder or client of a bank or financial institution who has passed away, initiating specific legal and operational procedures regarding the handling of the individual's assets and accounts.

Check Payment

A method of payment wherein the payer writes a check to the payee, who then deposits or cashes the check to receive the amount specified.