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.

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Definitions:

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