Question
In September, Larson Inc. sold 40,000 units of its only product for $339,000, and incurred a total cost of $285,000, of which $34,000 were fixed
In September, Larson Inc. sold 40,000 units of its only product for $339,000, and incurred a total cost of $285,000, of which $34,000 were fixed costs. The flexible budget for September showed total sales of $360,000. Among variances of the period were: total variable cost flexible-budget variance, $7,000U; total flexible-budget variance, $81,000U; and, sales volume variance, in terms of contribution margin, $29,000U. The total sales revenue in the master budget for September, to the nearest dollar, was: Multiple Choice $410,000. $450,000. $389,000. $500,000. $360,000.
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