Rollo Company Has Developed Cost Formulas for the Drivers of the Following

question 109

Multiple Choice

Rollo Company has developed cost formulas for the drivers of the following production activities: If the actual activity was 20 setups and the actual fixed cost for inspections was £28,000 and the variable cost for inspections was £5,000, the total variance for inspections is due to

• A) favorable variance on fixed costs.
• B) unfavorable variance on fixed costs.
• C) favorable variance on variable costs.
• D) unfavorable variance on variable costs.

---

Definitions:

Stressors

External or internal stimuli that cause stress, challenging an individual's ability to cope.

Destructive Stress

Stress that exceeds an individual's ability to cope and can lead to health problems or decrease in performance.

Dysfunctional

Not operating normally or effectively; causing negative effects.

Production Costs

The costs associated with producing a product or providing a service, which encompass labor, materials, and overhead expenses.