MINI-CASE AVB Inc.is a Business That Produces Automobile Parts.The Plan and and the Actual

question 47

Multiple Choice

MINI-CASE
AVB Inc.is a business that produces automobile parts.The plan and the actual performance of the business are shown in the table.

-Mini-Case Question.Calculate the margin variance of the business.

• A)-$72,000
• B)$72,000
• C)$80,000
• D)-$80,000
• E)$64,000

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Definitions:

Standard Cost

Predetermined or estimated costs used for cost control and decision making in manufacturing.

Actual Prices

The real prices at which goods and services are sold, differing from list or nominal prices.

Labor Rate Variance

The difference between the actual cost of labor and the budgeted or standard cost, based on the labor rate.

Actual Rate

A term that can refer to the real, observed interest rate, exchange rate, or other financial variable in contrast to a theoretical or estimated rate.