The Table Given Below Reports the Price of Soda Over

question 37

Multiple Choice

The table given below reports the price of soda over four consecutive years.
Table 5.7
$\begin{array}{c}\text { Price Data }\\\begin{array}{|c|c|c|}\hline \text { Year } & \text { Base-Year Soda Price } & \text { Current Soda Price } \\\hline 1 \text { (base year) } & \$ 0.30 & \$ 0.30 \\\hline 2 & \$ 0.30 & \$ 0.45 \\\hline 3 & \$ 0.30 & \$ 0.55 \\\hline 4 & \$ 0.30 & \$ 0.65 \\\hline\end{array}\end{array}$
-Refer to Table 5.7. Compute the price index for the third year.

• A) 150
• B) 183
• C) 100
• D) 118
• E) 130

---

Definitions:

Variable Overhead Efficiency Variance

A metric that measures the difference between the actual and budgeted variable overhead costs based on the efficiency of production.

Materials Quantity Variance

The difference between the actual and the standard amount of materials used in production, valued at the standard cost.

Labor Rate Variance

The difference between the actual cost of labor and the budgeted or standard cost, often used in budgeting and cost management.

Variable Overhead Rate Variance

The difference between the actual variable overheads incurred and the expected variable overheads based on standard rates.