Question 11 (2.5 points) The company produces two different models having different profit margin. The budgeted market share based on total sales of 3,750 units was 8% when actual total sale volume was 2,600 units. Assume that the budgeted contribution margin per composite unit was $10. (Ignore the correct answer for composite unit cost.) Based on the information below, compute the market size variance. (Note: The same table is used for Questions 7 through 11.) Budget Actual vc per VC per Units Sold Unit Units Sold 150 Model Model A Model B Unit Selling Price $11 $13 Selling Price $9 $14 117 $5 $9 $4 $10 150 143 Actual Market- size Variance = (market-Budgeted market Budgeted Contribution Margin per arket) x Budgeted Market 'x composite share unit for budgeted mix size size a) $920 U b) $680 F c) $920 F d) $680 U Question 17 (2.5 points) The company has two support departments and two operating departments as presented in the table below). Administration costs will be allocated based on administration salaries and IT costs based on service hours provided. Based on the information below, compute the support costs to be allocated to Domestic using the reciprocal method. Partial solution is given below: Expressing support costs in linear equations, A = $2,000+ 0.50IT IT = $4,000+ 0.20 A Solving the linear equations, A = $4,444; IT = $4,889 (Note: The same table is used for Questions 15, 16, and 17.) Support Departments Total Operating Departments Domestic World IT Administration $2,000 $4,000 Budgeted support costs Support work furnished: By Administration salaries: $200 (20%) $400 (40%) 20 hours (20%) $400 (40%) 30 hours (30%) 50 hours (50%) $1,000 (100%) 100 hours (100%) By IT service hours: O a) $3.724.30 b) $2,755.40 O c) $4,010.20 d) $3,910.00