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:

English Language

A West Germanic language that originated in England and is now the primary language of several countries and a global lingua franca.

Regular Event

An occurrence that happens at consistent intervals or in a predictable pattern.

Paralanguage

The aspect of spoken communication that is not formed by words themselves but is conveyed through tone of voice, loudness, pitch, and other vocal cues.

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Pertaining to the character or quality of sound, especially in music, where it refers to the organization of pitches and harmonies.