The Fortise Corporation manufactures two types of vacuum cleaners, the Victor for commercial building use and the HouseMate for residences. Budgeted and actual operating data for the year 2017 were as follows: Static Budget Victor House-Mate Total Number sold 6,000 24,000 30,000 Contribution margin $1,600,000 $3,120,000 $4,720,000 Actual Results Victor House-Mate Total Number sold 5,000 35,000 40,000 Contribution margin $1,580,000 $4,180,000 $5,760,000 What is the total staticbudget variance in terms of the contribution margin? A. $1,080,000 favorable B. $1,040,000 unfavorable C. $1,040,000 favorable D. $1,080,000 unfavorable

^Kori^: Goldfarb's Book and Music Store has two service departments, Warehouse and Data Center. Warehouse Department costs of $400,000are allocated on the basis of budgeted warehousehours. Data Center Department costs of $200,000 are allocated based on the number of computer logon hours. The costs of operating departments Music and Books are $150,000 and $180,000, respectively. Data on budgeted warehousehours and number of computer logon hours are as follows: Support Departments Production Departments Warehouse Department Data Center Department Music Books Budgeted costs $400,000 $200,000 $150,000 $180,000 Budgeted warehousehours NA 510 1,050 1,550 Number of computer hours 300 NA 890 1,050 Using the direct method, what amount of Warehouse Department costs will be allocated to Department Books? (Do not round any intermediary calculations.) A. $180,000 B. $238,462 C. $199,357 D. $161,538

^Kori^: Capity Tea Products has an exclusive contract with British Distributors. Calamine and Capity are two brands of teas that are imported and sold to retail outlets. The following information is provided for the month of March: Actual Budget Calamine Capity Calamine Capity Sales in pounds 3,800 lbs. 3,990 lbs. 4,400 lbs. 3,300 lbs. Price per pound $3.00 $3.10 $2.00 $3.00 Variable cost per pound 1.30 2.10 1.00 1.50 Contribution margin $1.70 $1.00 $1.00 $1.50 Budgeted and actual fixed corporatesustaining costs are $1,850 and $2,300, respectively. What is the contribution margin for the flexible budget? A. $9,785 B. $8,760 C. $10,450 D. $12,300

^Kori^: Taunton Company uses the highlow method to estimate its cost function. The information for 2017 is provided below: Machinehours Labor Costs Highest observation of cost driver 3,000 $276,000 Lowest observation of cost driver 2,000 $200,000 What is the estimated cost function for the above data? A. y = 48,000 + 76X B. y = 95.2X C. y = 276,000 + 92X D. y = 200,000 + 100X

^Kori^: Torid Company processes 18,175 gallons of direct materials to produce two products, Product X and Product Y. Product X sells for $6 per gallon and Product Y, the main product, sells for $170 per gallon. The following information is for December: Beginning Ending Production Sales Inventory Inventory Product X: 5,650 5,500 0 150 Product Y: 10,375 10,470 125 30 The manufacturing costs totalled $35,000. The production method will report Product X in the balance sheet at ________. A. $25,500 B. $5,100 C. $900 D. $0