The Table Below Shows the Relationship Between the Number of Times

question 118

Multiple Choice

The table below shows the relationship between the number of times you get your car washed each month and your total monthly benefit from car washes. Each car wash costs $15. 

What's the average benefit of 4 car washes per month?

• A) $14
• B) $12
• C) $8
• D) $4

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Definitions:

Materials Quantity Variance

The deviation of the actual materials used from the expected standard quantity in production, times the standard unit cost.

Controllable Overhead Variances

The differences between the budgeted and actual overhead costs that management can control or influence.

Volume Overhead Variances

The difference between the expected (budgeted) overhead costs based on standard volume and the actual overhead costs incurred.

Flexible Manufacturing Budget

A budget that adjusts to changes in the volume of production, providing variable costs based on different levels of activity.