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Type text) Use the following information to answer questions 11-13 Debbie's Bakery, Inc. (DBI) sells chocolate brownies to hungry customers. DBI prepared a budget for
Type text) Use the following information to answer questions 11-13 Debbie's Bakery, Inc. (DBI) sells chocolate brownies to hungry customers. DBI prepared a budget for May 2013 based on the following information: ixed Variable $5.00 $1.00 $0.30 $0.50 Revenue Cost of brownie Wages Utilities Pent $3,000 $1,000 $2,000 $1,000 her expenses For May 2013, DBI budgets that 3,000 brownies will be sold. Actual results for May 2013 showed sales of 2,800 brownies. Actual financial results for May 2013 were: $15,400 Revenue Less Cost of brownies sold 3,080 Wages Utilities Rent Other expense Total costs 3,000 2,000 2,000 2,620 12,700 $2,700 Net Operating Income Type text 11. What did DBI's May 2013 planning budget show for net operating profit (loss)? a. $15,000 b. $9,600 . $8,000 d. $12,000 e. $2,600 12. After May's results were known, DBI prepared a flexible budget. What was DBI's net operating income activity variance for May 2013? a. $640 Favorable b. S640 unfavorable C, $1,000 Unfavorable d. $800 Unfavorable e. $1,960 Unfavorable 13. What was DBI's May 2013 revenue and spending variance for net operating income? a. $1,400 Favorable b. $12,320 Favorable c. $400 Favorable d. $740 Favorable e. $100 Favorable
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