Use the Information Below to Answer the Following Question(s)

question 47

Multiple Choice

Use the information below to answer the following question(s) .Special Tea Products (STP) has an exclusive contract with Tea Distributors.Two brands of Teas are imported, Strong and Mild, and sold to retail outlets.The monthly budget for the contract is based on a combination of last year's performance, a forecast of general industry sales, and the company's expected share of the Canadian market for imported Tea.The following information is provided for the month of May:
Budgeted fixed costs are $1,750.Actual fixed costs are $2,000.
-What is the STP total static-budget variance for revenues?

• A)$50 favourable
• B)$250 favourable
• C)$50 unfavourable
• D)$250 unfavourable
• E)$800 unfavourable

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Definitions:

Empirical Reasoning

It involves drawing conclusions based on observation or experimentation.

Comparative Reasoning

The process of analyzing and evaluating the similarities and differences between entities to draw a conclusion or make a decision.

Ideological Reasoning

The process of forming judgments and ideas based on a set ideology or set of beliefs, rather than empirical evidence or objective truth.

Independent Verification

The process of having a third party check or validate findings or results to ensure their accuracy or authenticity.