Answer the Following Questions Using the Information Below

question 85

Multiple Choice

Answer the following questions using the information below:

-In a 2-variance analysis the flexible-budget variance and the production-volume variance should be ________, respectively.

• A)$11,000 U; $110,000 U
• B)$41,000 U; $80,000 U
• C)$21,000 U; $100,000 U
• D)$121,000 U; Zero

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Definitions:

FIFO

"First In, First Out," an inventory valuation method where goods first bought are the first to be sold, affecting the costs reported in the financial statements.

Gross Profit

The difference between revenue and the cost of goods sold before deducting selling, general, and administrative expenses.

Net Income

The net income of a company, which is calculated by deducting all costs and taxes from the total revenue.

Incidental Costs

Minor or secondary costs that are associated with purchasing or manufacturing a product but not directly allocable to production costs.