Toby, a Single Taxpayer with No Dependents,made the Following Cash $$\begin{array} { l r } \text { Salvation Army } & \$ 3,000 \\\text { Church } & 2,000\end{array}$$

question 39

Multiple Choice

Toby, a single taxpayer with no dependents,made the following cash contributions during the current year.
?
$$\begin{array} { l r } \text { Salvation Army } & \$ 3,000 \\\text { Church } & 2,000\end{array}$$
Toby's AGI is $100,000 and is in the 22% marginal tax rate. In addition to the expenditures described above, his only other qualified itemized deductions are home mortgage interest of $6,000 and property taxes of $2,000. What is the after-tax cost to Toby of his charitable contributions?

• A)$- 0 -
• B)$3,900
• C)$4,340
• D)$4,780
• E)$5,000

---

Definitions:

Favorable

A term used in variance analysis indicating that actual costs were lower than budgeted or standard costs, leading to higher profits.

Unfavorable

A term used in variance analysis to describe a situation where actual results are worse than expected results, often leading to a negative impact on financial performance.

Raw Materials Price Variance

This variance highlights the difference between the actual cost of raw materials used in production and the standard or expected cost.

Variable Overhead Efficiency Variance

The difference between actual and budgeted variable overhead costs, attributable to differences in productive efficiency.