Use the Information Below to Answer the Following Questions -Refer to the Table Above

question 39

Multiple Choice

Use the information below to answer the following questions.
$\begin{array}{lll}&\text { Flexed Budget for April }&\text { Actual for April }\\\text { Output } &40,000 \text { units } & 40,000 \text { units }\\\text { Sales } & \$ 500,000 & \$ 400,000 \\\text { Raw materials } & \$ 100,000 & \$ 88,000 \\\text { Labour } & \$ 250000 & \$ 180,000 \\\text { Overheads } & \$ 325000 & \$ 375,000\end{array}$
-Refer to the table above. The adverse (unfavourable) sales variance of $100 000 is best explained by:

• A)a decrease in price of the units sold.
• B)the sales manager failing to sell the budgeted units.
• C)an increase in expenses.
• D)None of the above

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Definitions:

Bill of Material

A comprehensive list of raw materials, components, and instructions required to construct, manufacture, or repair a product or service.

Assembly Drawing

A detailed diagram that shows the parts of an object and how they fit together to form the final product.

Engineering Drawing

A drawing that shows the dimensions, tolerances, materials, and finishes of a component.

Tolerances

The permissible limits of variation in a physical dimension, material property, or manufacturing process, crucial for ensuring parts fit and function together as intended.