Use the Information Below to Answer the Following Question(s)

question 14

Multiple Choice

Use the information below to answer the following question(s) .Michelle Inc.uses a level 4-variance analysis of its manufacturing overhead costs, and has the following results for April.A.Budgeted direct labour-hours per unit is used to allocate variable manufacturing overhead.Fixed overhead is allocated on a per unit basis.
b.Budgeted amounts for April are:
C.Actual amounts for April are:

-If Michelle Inc.uses a two-variance analysis format then what will be the reported variances?

• A)flexible-budget variance $100,000 U; Production-volume variance $200,000 U
• B)efficiency variance $80,000 U; production-volume variance $200,000 F
• C)rate variance $10,000 U; efficiency variance $120,000 F
• D)rate variance $10,000 U; efficiency variance $80,000 U
• E)flexible-budget variance $90,000 U; production-volume variance $200,000 F

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Definitions:

Dominant Strategy

A strategy that is the best for a player in a game regardless of the strategies chosen by other players.

Nash Equilibria

An idea in game theory that states a player cannot gain an advantage by altering their strategy while others maintain theirs.

Maximin Strategy

In decision-making, a strategy that maximizes the minimum gain that can be achieved, often used under conditions of uncertainty to minimize possible losses.

Dominant Strategy

In game theory, a strategy that is best for a player regardless of the strategies chosen by other players.