The Total Traceable Costs of the Account Billing Activity Centre

question 23

Multiple Choice

The total traceable costs of the account billing activity centre is $245,000. Cost behaviour analysis indicates that fixed costs are $75,000. Activity analysis indicates that the cost driver for account billing activity is the number of lines printed, and the total lines printed is 2,500,000.
-If the total sales activity variance was $15,000 favourable, and the total master-budget variance was $17,500 favourable, then the total flexible-budget variance must have been

• A) $32,500 favourable.
• B) $ 2,500 favourable.
• C) $ 2,500 unfavourable.
• D) undeterminable.

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Definitions:

Causal Chain

A sequence of events where one event causes the next, leading to the final outcome.

Trespass to Personal Property

The act of unlawfully interfering with another person's possessions without consent.

Permission

Authorization granted by one party to another to do something that is otherwise not allowed or would be illegal without such authorization.

Lawsuit

A legal action brought by one party against another in a court of law, typically seeking a remedy for a wrong.