The Static Budget,at the Beginning of the Month,for La Verne $\underline{\text{Static budget:}}$

question 184

Multiple Choice

The static budget,at the beginning of the month,for La Verne Company follows: $\underline{\text{Static budget:}}$
Sales volume: 2100 units: Sales price: $57.00 per unit
Variable cost: $13.00 per unit: Fixed costs: $25,000 per month
Operating income: $67,400
$\underline{\text{Actual results,at the end of the month,follows:}}$
$\underline{\text{Actual results:}}$
Sales volume: 1900 units: Sales price: $58.00 per unit
Variable cost: $17.00 per unit: Fixed costs $35,000 per month
Operating income: $42,900
Calculate the sales volume variance for variable costs.

• A)$8800 U
• B)$2600 F
• C)$200 U
• D)$8800 F

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Definitions:

Hull's Model

A drive-reduction theory of learning and motivation that describes behavior as responses to the reduction of basic physiological needs.

Drive Reduction

A theory in psychology that focuses on how fulfilling biological needs reduces physiological drives.

Learning

The process of acquiring new understanding, knowledge, behaviors, skills, values, attitudes, or preferences through study, experience, or instruction.

Cognitive Psychology

is the study of mental processes such as "attention, language use, memory, perception, problem-solving, creativity, and thinking."