Alexander Consumer Products Has a Small Car Division That Operates

question 35

Multiple Choice

Alexander Consumer Products has a small car division that operates as a profit center.Below is a partially completed responsibility report for the first quarter. Compute the percentage variance for the flexible budget variance for traceable fixed expenses.(Round your answer to two decimal places. )

• A)0.82% F
• B)0.82% U
• C)1.04% U
• D)1.04% F

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Definitions:

Variable Costs

Costs that change directly in proportion to changes in the level of production or activity within a business.

Fixed Costs

Costs that do not change with the level of output or production, such as rent, salaries, or loan payments.

Fixed Costs

Costs that do not vary with the level of output or production, such as rent, salaries, and loan payments.

Variable Costs

Costs that vary directly with the level of production or output.