Answer the Following Questions Using the Information Below

question 130

Multiple Choice

Answer the following questions using the information below:
The Sarasota Corporation manufactures two types of vacuum cleaners, the Victor for commercial building use and the House-Mate for residences. Budgeted and actual operating data for the year 2012 were as follows:

-What is the total static-budget variance in terms of the contribution margin?

• A)$900,000 favorable
• B)$700,000 favorable
• C)$200,000 unfavorable
• D)$360,000 unfavorable

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Definitions:

Exchange Rates

The worth of one currency when exchanged for another.

Allocation

The process of distributing resources or items among various people, tasks, or projects.

Transportation Costs

Costs associated with transporting goods from one place to another, encompassing charges for cargo shipping, fuel expenses, and workforce fees.

Fixed Costs

Expenses that remain constant regardless of the amount of goods produced or sold, including lease payments, wages, and coverage fees.