Use the Information Below to Answer the Following Question(s)

question 20

Multiple Choice

Use the information below to answer the following question(s) .Special Tea Products (STP) has an exclusive contract with Tea Distributors.Two brands of Teas are imported, Strong and Mild, and sold to retail outlets.The monthly budget for the contract is based on a combination of last year's performance, a forecast of general industry sales, and the company's expected share of the Canadian market for imported Tea.The following information is provided for the month of May:
Budgeted fixed costs are $1,750.Actual fixed costs are $2,000.
-What is the STP sales-volume variance (contribution margin) for Strong tea?

• A)$600 favourable
• B)$600 unfavourable
• C)$900 favourable
• D)$900 unfavourable
• E)$300 unfavourable

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Definitions:

Course of Employment

Pertains to the activities an employee does within the scope of their job or duties as authorized or expected by their employer.

Family and Medical Leave Act

A United States federal law that provides employees with unpaid, job-protected leave for certain family and medical reasons.

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Additional compensation required by law to be paid to eligible employees for hours worked beyond the standard workweek.