Cox Engineering Performs Cement Core Tests in Its Laboratory

question 48

Multiple Choice

Cox Engineering performs cement core tests in its laboratory. The following standards have been set for each core test performed: During March, the laboratory performed 2,000 core tests. On March 1 no direct materials (sand) were on hand. Variable manufacturing overhead is assigned to core tests on the basis of standard direct labor-hours. The following events occurred during March:

• 8,600 pounds of sand were purchased at a cost of $7,310.
• 7,200 pounds of sand were used for core tests.
• 840 actual direct labor-hours were worked at a cost of $8,610.
• Actual variable manufacturing overhead incurred was $3,200.
-The variable overhead efficiency variance for March is:

• A)$320 unfavorable
• B)$320 favorable
• C)$360 unfavorable
• D)$360 favorable

Identify the benefits of unbundling strategies in price-sensitive markets.

Analyze the implications of price sensitivity and break-even analysis in pricing decisions.

Grasp the concepts of price sensitivity in relation to customer expectations and product pricing.

Understand different pricing strategies and their application across product life cycle stages.

---

Definitions:

Planning Budget

A budget prepared before a period begins, reflecting expected revenues, expenses, and other financial transactions based on forecasted activities and conditions.

Employee Salaries

Regular payments made to employees for their services, which may be fixed amounts as per employment contracts, not directly tied to the volume of output they produce.

Fixed Cost

Costs that do not change with the level of production or sales, such as rent, salaries, and insurance.

Planning Budget

A budget prepared before a period begins based on management's objectives and estimated revenues and expenses.