Using the Midpoint Method,if the Price of an Airline Ticket

question 254

Multiple Choice

Using the midpoint method,if the price of an airline ticket from Orlando to Pittsburgh falls from $275 to $238,the percentage change in price is

• A) 1442 percent.
• B) 14.42 percent.
• C) 15.54 percent.
• D) 13.45 percent.
• E) 68.00 percent.

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Definitions:

Overapplied

In cost accounting, this refers to a situation where the allocated overhead costs exceed the actual overhead costs incurred.

Variable Overhead Rate

The per-unit cost of overhead that changes with the level of production or activity.

Efficiency Variances

The differences between actual costs and the standard or budgeted costs based on the efficient use of resources.

Fixed Manufacturing Overhead Budget

A predetermined estimate of the total fixed costs required to support production activities, excluding variable costs directly tied to production volume.