Answer the Following Questions Using the Information Below:
as Part

question 29

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 variance for variable costs is:

• A)$21 000 favourable.
• B)$41 000 unfavourable.
• C)$13 583 unfavourable.
• D)$41 000 favourable.

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Definitions:

Jargon

Specialized language used by a particular profession or group that may be difficult for others to understand.

Communication Barriers

Obstacles or difficulties in the process of exchanging information that prevent clear and effective communication.

Cross-Cultural Training

Education or training designed to help individuals understand and adapt to cultural differences, enhancing their effectiveness in international environments.

Non-Hierarchical

A structure or organization in which power and authority are distributed evenly among members, without a clear chain of command.