Use the Information Below to Answer the Following Question(s)

question 178

Multiple Choice

Use the information below to answer the following question(s) .Big Island Coffee Co.produced and sold 120,000 units last year.Per unit revenue and costs were as follows:
Fixed manufacturing overhead and administrative salaries are fixed costs.The per unit amounts are based on last year's production.
-Fixed costs depend on the

• A)amount of resources used.
• B)amount of resources acquired.
• C)volume of production.
• D)volume of sales.
• E)allocation method.

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Definitions:

Budget Variance

The difference between what was budgeted for a period and what was actually spent or received.

Volume Variance

The difference between the expected (budgeted) volume of production or sales and the actual volume, impacting costs and revenues.

Cooling Coil

A device within an air handling unit or HVAC system used to lower air temperature and remove moisture by passing air over a cold surface.

Fixed Overhead Budget Variance

The difference between the actual fixed overhead costs incurred and the expected (budgeted) costs.