Answer the Following Questions Using the Information Below:
Berman's Camera

question 39

Multiple Choice

Answer the following questions using the information below:
Berman's Camera Shop has prepared the following flexible budget for September and is in the process of interpreting the variances. F denotes a favorable variance and U denotes an unfavorable variance.
$\begin{array}{lrrr} &\text { Flexible }&\text { Variances }\\& \text { Budget } & \text { Price } & \text { Efficiency } \\\text { Material A } & \$ 40,000 & \$ 1,000 \mathrm{~F} & \$ 3,000 \mathrm{U} \\\text { Material B } & 60,000 & 500 \mathrm{U} & 1,500 \mathrm{~F} \\\text { Direct manufacturing labor } & 80,000 & 500 \mathrm{U} & 2,500 \mathrm{~F}\end{array}$
-The actual amount spent for Material B was ________.

• A) $58,000
• B) $59,000
• C) $60,000
• D) $61,000

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Definitions:

Investment Turnover

A financial ratio that measures the efficiency of a company's use of its investments in generating sales revenue.

Return on Investment

A performance measure used to evaluate the efficiency or profitability of an investment, calculated as the net profit divided by the cost of the investment.

Profit Margin

The ratio of net income to revenue, indicating how much profit is made on average from sales.

Authority

The authority or capability to issue commands, make choices, and ensure compliance.