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:

Fixed Ratio

A schedule of reinforcement where a response is reinforced only after a specified number of responses, often used in behavioral studies.

Variable Interval

A reinforcement schedule where a response is rewarded after a variable and unpredictable time period has elapsed.

Fixed-interval Schedule

A timing-based reinforcement scheme where a specific time interval must elapse before a response is rewarded.

Reinforcement

In behavioral psychology, it refers to a process that increases the likelihood of a behavior by adding or removing a stimulus following the behavior.