The Total Traceable Costs of the Account Billing Activity Centre

Multiple Choice

The total traceable costs of the account billing activity centre is $245,000. Cost behaviour analysis indicates that fixed costs are $75,000. Activity analysis indicates that the cost driver for account billing activity is the number of lines printed, and the total lines printed is 2,500,000.
-Which statement would NOT be a possible reason for a variance between a flexible budget and actual results?

A) Material prices were different than expected.
B) Labour prices were different than expected.
C) The actual volume of activity was different than expected.
D) The amount of labour used per unit of output was different than expected.