-Complete Table 21

question 18

Multiple Choice

-Complete Table 21.5: The average variable cost of the second unit of output in Table 21.5 is

• A)$6.00.
• B)$4.00.
• C)$8.00.

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Definitions:

Materials Price Variance

The difference between the actual cost of materials and the expected cost multiplied by the quantity of materials used.

Unfavorable

A term used to describe a variance or difference that negatively impacts financial performance.

Labor Rate Variance

The difference between the expected cost of labor at standard rates and the actual cost of labor incurred.

Raw Materials Quantity Variance

The difference between the expected amount of raw materials required for production and the actual amount used, evaluated in terms of cost.