Answer the Following Questions Using the Information Below:
the Tornado

question 223

Multiple Choice

Answer the following questions using the information below:
The Tornado Dust Removers Corporation manufactures two vacuum cleaners,the Standard and the Supreme.The following information was gathered about the two products:
$$\begin{array} { l r r } & \text { Standard } & \text { Supreme } \\\text { Bud geted sales in urits } & 4000 & 1000 \\\text { Bud geted selling price } & \$ 300 & \$ 850 \\\text { Bud geted contribution margin per unit } & \$ 210 & \$ 550 \\\text { Actual sales in units } & 3500 & 1500 \\\text { Actual selling price } & \$ 325 & \$ 840\end{array}$$
-Which item is NOT used in the calculation of the market-share variance?

• A)actual sales-mix percentage.
• B)budgeted contribution margin per composite unit for budgeted mix.
• C)actual market size in units.
• D)actual market share.

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Definitions:

Interest On Municipal Bonds

The periodic payments made to investors of municipal bonds, often exempt from federal and sometimes state and local taxes.

MACRS Depreciation

Modified Accelerated Cost Recovery System, a method of depreciation for tax purposes in the United States that allows a faster write-off of assets.

Product Warranty Expenses

Product warranty expenses are costs that a company anticipates and records for potential future claims on warranties provided for their products.

Temporary Differences

Differences between taxable income and accounting income, due to items being recognized in different periods for tax and accounting purposes.