In September, Larson Inc

question 138

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 total amount of variable costs in the flexible budget for September, to the nearest dollar, was:

• A) $129,000.
• B) $192,000.
• C) $200,000.
• D) $208,000.
• E) $255,000.

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Definitions:

Just Books

a term potentially referring to a concept of fairness in accounting practices, ensuring that records are accurate and truthful.

Incidental Beneficiary

A party who indirectly benefits from a contract but has no legal right to enforce the agreement made between other parties.

Donee Beneficiary

A third party that benefits from a contract between two other parties, to whom the promisor's performance is a gift.

Promisee

The individual or entity to whom a promise is made and who stands to benefit from the fulfillment of that promise.