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

question 143

Multiple Choice

Answer the following questions using the information below:
Midend'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.
$\begin{array}{lrrr} &\text { Flexible }&\text { Variances }\\& \text { Budget } & \text { Price } & \text { Efficiency } \\\text { Material A } & \$ 25,000 & \$ 1,500 \mathrm{U} & \$ 1,800 \mathrm{~F} \\\text { Material B } & 32,000 & 600 \mathrm{~F} & 900 \mathrm{U} \\\text { Material C } & 42,000 & 1,300 \mathrm{U} & 900 \mathrm{~F}\end{array}$
-The actual amount spent for Material B was ________.

• A) $31,700
• B) $30,500
• C) $33,500
• D) $32,300

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Definitions:

Uncertainty Resolution

The process of clarifying and reducing the uncertainty in decision-making or forecasting, particularly through the gathering of more information oranalysis.

Tends

Likely to behave in a particular way or follow a specific pattern over time.

High Dividend Payout

Refers to companies that return a large portion of their earnings to shareholders in the form of dividends, often signaling financial strength.

Flotation Costs

Expenses incurred by a company when issuing new securities, including legal, underwriting, and advertising costs.