-The Figure Above Shows Sarah's Budget Line

question 260

Multiple Choice

-The figure above shows Sarah's budget line.Sarah earns $500 per week selling baskets made out of tree vines.With this money she buys sushi and rose bushes.Each piece of sushi costs $1 and each rose bush costs $10.Sarah is NOT able to purchase the combination of

• A) 50 roses bushes and 0 pieces of sushi.
• B) 20 rose bushes and 200 pieces of sushi.
• C) 0 roses bushes and 300 pieces of sushi.
• D) 30 roses bushes and 300 pieces of sushi.
• E) None of the above answers is correct because Sarah is able to purchase all the listed combinations of roses and sushi.

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Definitions:

FOH Budget Variance

is the difference between the budgeted factory overhead costs and the actual overhead costs incurred.

FOH Volume Variance

A measure used in accounting to describe the difference between the budgeted and actual volume of production, affecting fixed overhead costs.

Standard Cost Variances

Differences between the actual costs incurred and the standard costs that were expected or budgeted, used for budget control and financial analysis.

Raw Materials

Basic substances in their natural, modified, or semi-processed state used as inputs to a production process for manufacturing goods.