When Actual Variable Cost Per Unit Equals Standard Variable Cost

question 50

Multiple Choice

When actual variable cost per unit equals standard variable cost per unit, the difference between actual and budgeted contribution margin is explained by a combination of which two variances?

• A) The sales-volume variance and the fixed-overhead volume variance.
• B) The sales-volume variance and the fixed-overhead budget variance.
• C) The sales-price variance and the fixed-overhead volume variance.
• D) The sales-price variance and sales-volume variance.
• E) The sales-price variance and fixed-overhead budget variance.

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Definitions:

Selling Expenses

Costs incurred directly from the selling of goods or services, including advertising, sales commissions, and store displays.

Administrative Expenses

Costs related to the general operation of a business, including salaries of executive staff, office supplies, and utility expenses, but not directly tied to production or sales.

Materials Requisition

A document or electronic form used to request materials needed for production from the storeroom or inventory management.

Storeroom

A room used for storing goods, materials, or supplies within a business or organization.