The Following Is a Summarized Master Budget That Winnipeg Company

question 114

Multiple Choice

The following is a summarized master budget that Winnipeg Company prepared for January:
$\begin{array}{|l|r|r|}\hline \text { Sales } & & 9,000 \text { units } \\\hline \text { Sales revenue } & \$ 450,000 \\\hline \text { Less variable costs: } & & \\\hline \text { Manufacturing } & \$ 270,000 & \\\hline \text { Selling and administrative } & \underline{18,000} & \underline{288,000} \\\hline \text { Contribution } & & \$ 162,000 \\\hline \text { Less fixed costs: } & & \\\hline \text { Manufacturing } & 72,000 & \\\hline \text { Selling and administrative } & \underline{27,000} & \underline{99,000} \\\hline \text { Operating income } & & \$ 63,000 \\\hline\end{array}$

$\text { Actual results for January were as follows: }$

$\begin{array}{|l|r|}\hline \text { Units produced and sold } & 8,500 \text { units } \\\hline \text { Selling price per unit } & \$ 55.00 \\\hline \text { Variable costs per unit: } & \\\hline \text { Manufacturing } & \$ 32.00 \\\hline \text { Selling and administrative } & \$ 1.50 \\\hline \text { Total fixed costs } & \$ 99,000\\\hline\end{array}$

-What was the flexible operating income for February?

• A) $23,000.
• B) $25,000.
• C) $35,000.
• D) $33,000.

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Definitions:

Impression Management

Strategies individuals or organizations use to influence the perceptions of others, often to appear more favorable or competent.

Personal Attributes

Characteristics or qualities that define an individual's personality and behavior.

Fundamental Attribution Error

Overestimates internal factors and underestimates external factors as influences on someone’s behaviour.

Self-Serving Bias

Self-serving bias explains personal success by internal causes and personal failures by external causes.