-The Above Table Gives Some of the Costs of the Delicious

question 359

Multiple Choice

-The above table gives some of the costs of the Delicious Pie Company. The marginal cost of increasing pie output from 200 to 300 pies equals ________ per pie.

• A) $1.800
• B) $1,000
• C) $8
• D) $6

---

Definitions:

Variable Overhead

Overhead costs that fluctuate with changes in production activity levels, such as utilities or materials used in production.

Labour Rate Variance

The difference between the actual cost of labour and the standard or expected cost of labour.

Sales Volume Variances

Sales volume variances represent the difference between the actual quantity of product sold and the expected quantity sold, indicating market performance or operational efficiency.

Standard Costing

A cost accounting method that assigns expected costs to each unit of production to help managers identify variances between expected and actual costs.