In a Standard Cost System, an Unfavorable Production-Volume Variance Would

question 165

Multiple Choice

In a standard cost system, an unfavorable production-volume variance would result if:

• A) There is an unfavorable labor efficiency variance.
• B) There is an unfavorable labor rate variance.
• C) Actual production is less than the "denominator volume" (that is, the volume level used to establish the fixed overhead application rate).
• D) There is an unfavorable fixed manufacturing overhead spending variance.
• E) Actual fixed overhead costs are greater than budgeted fixed overhead costs.

---

Definitions:

SamSam

A type of ransomware utilized in cyber attacks to encrypt data on a victim's computer, demanding ransom payments for decryption keys.

Auditing

The systematic examination and assessment of systems, records, or processes to ensure compliance with standards, policies, or financial accuracy.

Interconnected

The state of being connected with each other, referring to systems, devices, or networks that communicate and work together.

Interdependent

Mutually reliant on each other, where the actions or outcomes of one entity or process affect another.