Table 13-4 Table 13-4 Lists Estimated Revenues and Costs (Per Week)for Plastic

question 246

Multiple Choice

Table 13-4

Table 13-4 lists estimated revenues and costs (per week) for plastic vials (100 vials per box) for the Victoria Biological Supplies Company. Victoria sells plastic vials to universities and private research laboratories.
-Refer to Table 13-4.At Victoria's profit-maximizing output,

• A)profit equals $2.
• B)total revenue equals $24 and total cost equals $20.
• C)total revenue equals $25 and total cost equals $22.
• D)total revenue equals $21 and total cost equals $17.

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Definitions:

Materials Quantity Variance

The difference between the actual quantity of materials used in production and the standard quantity expected to be used, multiplied by the standard cost per unit of material.

Labor Efficiency Variance

The difference between the actual hours worked and the standard hours expected, multiplied by the standard labor rate.

June

The sixth month of the year in the Gregorian calendar.

Variable Overhead Efficiency Variance

The difference between the actual variable overheads incurred and the standard variable overheads expected for the actual production, due to efficiency.