Reference no: EM132716011
In September, Larson Inc. sold 50,000 units of its only product for $317,000, and incurred a total cost of $295,000, of which $32,000 was fixed costs. The flexible budget for September showed total sales of $370,000. Among variances of the period were: total variable cost flexible-budget variance, $8,000U; total flexible-budget variance, $77,000U; and, sales volume variance, in terms of contribution margin, $34,000U.
Problem 1: What The budgeted fixed cost for September, to the nearest dollar, was:
Multiple Choice
Option 1: $85,000.
Option 2: $121,000.
Option 3: $38,000.
Option 4: $16,000.
Option 5: $99,000.
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