If Actual Units Produced Exceed the Budgeted Units to Be

question 37

Multiple Choice

If actual units produced exceed the budgeted units to be produced,which of the following statements would be TRUE?

• A)Production volume variance is expected to be unfavorable.
• B)Overhead flexible budget variance is expected to be favorable.
• C)Overhead flexible budget variance is expected to be unfavorable.
• D)Production volume variance is expected to be favorable.

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Definitions:

Surplus Material

Items or materials in excess of what is needed, often retained for future use or disposed of through sale or donation.

Disposal Options

Various methods available for disposing of waste, surplus, or obsolete resources or assets.

Transferring

The act of moving or shifting something from one place, person, or entity to another.

Selling

Selling involves the process of offering goods or services to customers in exchange for money or other forms of payment.