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The following information pertains to the next two questions 2-3.

Aspen Core Realtors, Inc., specializes in home sales. Revenue is earned from selling fees. Commissions for salespersons, listing agents, and listing companies are the main costs for the company. Business has improved steadily over the last ten years. As usual, Bonnie Boris, the managing partner of Aspen Core Realtors, Inc., received a report summarizing the performance for the most recent year.

Aspen Core Realtors, Inc.

Performance Report for the Year Ended December 31, 2015

	I.Master Budget*	II.Flexible Budget**	III.Actual***	IV.Master Actual Variance
Total Selling Fees	$2,052,000	$2,280,000	$2,243,200	191,200F
Less Variable Costs
Sales Commissions	1,102,950	1,225,500	1,205,183	102,233U
Automobile	36,000	40,000	39,560	3,560U
Advertising	93,600	104,000	103,450	9,850U
Home Repairs	77,400	86,000	89,240	11,840U
Variable Overhead	656,100	729,000	716,970	60,870U
Less Fixed Costs
General Overhead	60,000	60,000	62,300	2,300U
Total Costs	2,026,050	2,244,500	2,216,703	190,653U
Net Income	25,950	35,500	26,497	547F

*Budgeted data based on 180 home sales.

**Flexible Budget based on 200 home sales.

***Actual selling fees and operating costs of 200 home sales.

______ 2. What is the most significant single cause of all of the total unfavorable variable cost variances shown in the Master-Actual Variance column? [5 points]

Aspen Core Realtors spent more than expected.

Aspen Core Realtors spent less than expected.

The number of home sales increased.

Selling fees (prices) increased.

None of the above.

______3. The flexible budget variance for sales commissions is: [5 points]

$122,500 unfavorable

$122,500 favorable

$20,317 unfavorable

$20,317 favorable

None of the above

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