Answer the Following Questions Using the Information Below:
as Part

question 95

Multiple Choice

Answer the following questions using the information below:
As part of the budgeting process,Garden Gnomes Incorporated had developed the following static budget for the third quarter.Garden Gnomes is in the process of preparing the flexible budget and understanding the results.The actual information relates to the third quarter.
$\begin{array}{lrlr}&\text { Actual } & \text { Flexible } & \text { Static } \\&\text { Results } & \text { Budget } & \text { Budget }\\\text { Sales volume (in units) } & 13000 & \underline{\quad\quad} & 12000 \\& & & \\\text { Sales revenues } & \$ 257500 & \$ &\$ 250000 \\\text { Variable costs } & 154000 & \$\underline{\quad\quad} &\underline{180000} \\ & & & \\\text { Contribution margin } & 103500 & \$ & 70000 \\& & & \\\text { Fixed costs } & 50500 & \$\underline{\quad\quad} & 49500 \\\text { Operating profit } & \$ 53000 & \$\underline{\quad\quad} & \$ 20500\end{array}$

-The flexible budget will report ________ for the fixed costs.

• A)$49 500 favourable
• B)$1000 unfavourable
• C)$49 500
• D)$50 500

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Definitions:

Breccia

Breccia is a coarse-grained sedimentary rock composed of angular fragments of minerals or rocks cemented together, often formed in fault zones or as volcanic ejecta.

Sandstone

A sedimentary rock formed by the consolidation and compaction of sand, often containing minerals like quartz or feldspar.

Sedimentary Clasts

Pieces of rock or mineral fragments that are transported and deposited by wind, water, or ice, then compacted and cemented into sedimentary rock.

Breccia

A type of rock composed of broken fragments of minerals or rocks cemented together by a fine-grained matrix.