Alaska Company Expressed the Total Expenses (Y) Component of Its

question 103

Multiple Choice

Alaska Company expressed the total expenses (Y) component of its master budget for February with the cost formula Y = $100,000 + $40*X, where X represents the expected number of units of its only product to be manufactured and sold. The budgeted average selling price per unit was $65 for budgeted sales volume 5,000 units. Reported actual results for February were as follows:

-What was the total static budget variance for February?

• A) $7,400 U.
• B) $2,600F
• C) $10,000F
• D) $1,000 U.

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Definitions:

Deformation

involves the alteration of the shape or size of rocks and geological structures due to stress and pressure over time.

Subsidence

the gradual sinking of land or a structure, often due to natural underground processes.

Uplift

The vertical elevation of the Earth's surface due to natural causes, such as tectonic movements or volcanic activity.

Oceanic Crust

The relatively thin part of the Earth's crust that underlies the ocean basins, composed largely of basalt and gabbro.